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Himachal Pradesh withdraws proposal to set up Medical Devices Park due to non-feasibility
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Gireesh Babu, New Delhi
December 10 , 2024
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Himachal Pradesh, one of the four chosen states for setting up of world class common infrastructure facilities for medical devices units under the Central government's Promotion of Medical Devices Parks scheme, has withdrawn its proposal for setting up the park due to non-feasibility.
The state, along with Uttar Pradesh, Tamil Nadu, and Madhya Pradesh were selected by the Department of Pharmaceuticals (DoP) for setting up of common facilities under the scheme, and the Department has already released Rs. 30 crore to each states in the initial stage.
These states were selected from proposals received from 16 states, according to the ministry of chemicals and fertilisers.
The Ministry said that the Medical Device Park at Himachal Pradesh was facing funding issues from the state government side.
"It appears that due to cost overrun it did not remain feasible for the state government to implement the park within the framework of the scheme guidelines of the department, despite all support available from the department and Rs. 30 crore already released to the state," said Anupriya Patel, minister of state in the ministry of chemicals and fertilisers recently in Lok Sabha.
"Hence, the proposal for setting up of the Medical Device Park at Nalagarh has been withdrawn by the state government," it added.
"Civil works in all the other three parks (except Himachal Pradesh) has progressed well with most of the structures for housing equipment for Common Infrastructure Facility (CIF) constructed, while procurement of equipment is in progress," said the Minister.
The Park in Himachal Pradesh was proposed to come up in an area of 265 acres, with a total project cost of Rs. 349.83 crore, of which the total CIF cost is Rs. 157.64 crore. In the previous Parliament session, the Minister has said that the Park utilised funds to the tune of Rs. 23 crore, including state share till June.
The statement from the Centre confirms the state's announcement in July, this year, that it is planning to build the park with its own resources and has decided to return the Rs. 30 crore received from the Central government.
"If the state government had not returned this money, it would have to provide land to the industrialists at Rupee one per square meter, electricity at Rs. 3 per unit, water, maintenance and warehouse facilities for ten years without any charge," said the state government.
It added that most of the equipment manufactured in this medical device park will be sold outside the state, but this would also cause direct loss to the state treasury due to Goods and Services Tax (GST).
"Therefore, to overcome this binding a decision has been taken to build the medical device park by itself due to which the state is expected to benefit by Rs. 500 crore in the coming 5-7 years from the sale of land and other resources. The state government will provide incentives to the industries coming to the Medical Device Park as per its industrial policy," it added during the time.
Chief Minister Thakur Sukhvinder Singh Sukhu, during the announcement said, “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 of 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. The state government has so far released Rs. 74.95 crore for this project and we are constructing the Medical Device Park on priority."
Earlier also the state government has decided not to take help from any private agency in the Bulk Drug Park being built in Haroli of Una district. The state government will provide Rs. 1,000 crore from its own resources for the construction of the bulk drug park, said the Chief Minister.
The Centre's scheme Promotion of Medical Device Parks was approved on March 20, 2020 for providing easy access to world class common infrastructure facilities to medical device units located in the parks. The total financial outlay of the scheme is Rs. 400 crore and the implementation period is from FY 2020-2021 to FY 2024-2025.
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