In a significant move to prioritize the interests of Himachal Pradesh, Chief Minister Sukhvinder Singh Sukhu announced that the state government will independently fund the construction of a medical device park in Nalagarh, Solan district. This decision comes as the government opts to return the Rs. 30 crore initially received from the central government, choosing instead to utilize state resources for the Rs. 350 crore project spread over 265 acres.
Financial Strategy and Expected Benefits
Returning the central funds frees the state from stringent conditions that would have required providing land at Rupee one per square meter, electricity at Rs. 3 per unit, and other utilities for free for ten years. This approach, which includes bearing the cost of these incentives, would have otherwise led to significant financial losses due to NSGST on equipment sold outside the state. By self-funding the project, the state anticipates a financial benefit of Rs. 500 crore over the next 5-7 years through the sale of land and other resources.
Commitment to State Interests
Chief Minister Sukhu emphasized the state government’s commitment to protecting the resources and interests of Himachal Pradesh. He highlighted the decision to avoid burdensome mandatory incentives that would strain the state exchequer, ensuring that the people of Himachal Pradesh benefit directly from the state’s resources. The government has already allocated Rs. 74.95 crore for the project and is prioritizing the construction of the Medical Device Park.
Strategic Industrial Development
The state government plans to fund the project with a loan from SIDBI under the cluster development scheme. The project’s restructuring will allocate 25% of the land exclusively for medical device industries, while 75% will be designated for other strategic industries. This allocation aims to ensure comprehensive industrial development in the region. The park is envisioned as a state-of-the-art industrial hub, promoting economic development and providing a steady source of income for the state.
Precedent in Bulk Drug Park Initiative
This decision follows a similar approach taken with the Bulk Drug Park in Haroli, Una district, where the state opted not to seek private agency assistance. Instead, it will invest Rs. 1,000 crore from its own resources. This consistent strategy underscores the government’s dedication to leveraging state resources for substantial, long-term benefits.
Conclusion
The independent construction of the medical device park in Nalagarh reflects the Himachal Pradesh government’s strategic initiative to enhance industrial infrastructure while safeguarding state interests. This project is poised to drive economic growth, generate revenue, and improve infrastructure, thereby contributing to the overall development of the region.
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