Shimla – In a decisive move to prioritize the interests of Himachal Pradesh, the state government has announced plans to construct a medical device park in Nalagarh, Solan district, using its own resources. This ambitious project, set to cover 265 acres and estimated to cost Rs. 350 crore, will be financed entirely by the state government. In line with this decision, the state has opted to return the Rs. 30 crore aid initially received from the central government for the project.
The state government’s choice to return the central aid is driven by the stringent conditions attached to the funding. These conditions would have necessitated providing land to industrialists at a highly subsidized rate of Rs. 1 per square meter, electricity at Rs. 3 per unit, along with free water, maintenance, and warehouse facilities for ten years. Furthermore, the majority of the equipment manufactured in the park would be sold outside the state, potentially leading to a direct loss to the state treasury due to the Non-State Goods and Services Tax (NSGST).
By choosing to fund the project independently, the state government anticipates a substantial financial benefit. The sale of land and other resources is expected to generate approximately Rs. 500 crore for the state over the next 5-7 years. Additionally, the state will provide incentives to industries setting up operations in the Medical Device Park per its industrial policy.
Chief Minister Thakur Sukhvinder Singh Sukhu expressed the state’s commitment to safeguarding its resources and ensuring their optimal utilization for the benefit of its residents. “The present state government would not allow the resources of Himachal Pradesh to be plundered at any cost. The people of Himachal Pradesh have a right over these resources, and the state government will take every step to protect the interests of the people of the state. If the money from the central government was not returned, then the industrialists would have to be given the mandatory incentives, which would put a huge burden on the state exchequer, thereby resulting in loss of revenue,” stated Chief Minister Sukhu.
The state government has already released Rs. 74.95 crore for the project and is prioritizing its construction. This initiative follows a similar approach for the Bulk Drug Park in Haroli, Una district, where the state government has opted not to seek assistance from private agencies and is providing Rs. 1,000 crore from its resources for the park’s development.
For the construction of the medical device park in Nalagarh, the state government plans to secure a loan from the Small Industries Development Bank of India (SIDBI) under the cluster development scheme. The project will be restructured to allocate 25 percent of the land exclusively for medical device industries and 75 percent for other strategic industries, ensuring comprehensive industrial development in the region. This industrial park aims to become a state-of-the-art industrial hub, contributing significantly to the state’s economic development and infrastructure improvement in the coming years.
