S Gopal Puri
Shimla:
The ambitious Medical Device Park project in Nalagarh, billed as a game-changer for Himachal Pradesh’s industrial growth, has come under political fire as the state BJP has accused the Congress-led government of gross mismanagement and financial imprudence.
The BJP’s allegations come as the project, which had been stalled since November 2024 due to lack of funds, is now back in focus. A Cabinet sub-committee has been tasked with submitting a detailed report on its future within two months. However, the BJP claims the damage has already been done, citing excessive spending and delayed execution.
Rs 150 crore just to flatten hill: BJP questions priorities
Himachal Pradesh BJP spokesperson Vivek Sharma lashed out at the government, claiming that Rs 150 crore was allegedly spent solely on levelling a hill at the proposed site of the park in Gheed and Teliwal villages of Nalagarh’s Manjholi panchayat. He alleged that this single expense accounted for an overwhelming portion of the project’s early budget.
“After spending Rs 150 crore on hill-cutting alone, the Industries Department is now demanding another Rs 350 crore for basic infrastructure. The state government has already spent Rs 1,300 per square metre just to level the land and yet refused to offer subsidies to investors,” Sharma said.
He further questioned the economic rationale of the government, pointing out the contradiction in spending massive sums on land preparation while withholding key incentives like Re 1 per square metre plots, cheap electricity, and maintenance support — all originally promised to attract investors.
Only 25% of plots reserved for medical device units
The BJP has also raised concerns over a revised project structure under which only 25% of the land is now being earmarked for actual medical device manufacturing units. This change, critics argue, goes against the spirit of the original plan approved by the Centre, which had identified Himachal Pradesh as one of four states to host such parks in 2022 to boost indigenous production and reduce dependency on medical device imports.
According to sources, the initial project cost stood at Rs 349.83 crore, with the Centre contributing Rs 100 crore for common scientific facilities. However, the state returned Rs 30 crore of that amount earlier this year, citing its intent to fund the project independently after rejecting the Centre’s condition of offering financial incentives to manufacturers.
Despite nearly three years since the project was announced, key facilities such as laboratories, factory shells and scientific infrastructure remain incomplete. Only basic plot demarcation and minor construction work were carried out before the funds dried up.
Investors still waiting, no plots allotted
At the core of the controversy is the delay in allotting plots to industrialists, many of whom had shown interest when the project was first announced. Though land was acquired and the hill levelled, no factories have come up and the state has yet to provide timelines for completing the infrastructure or resuming full-scale construction.
The BJP has accused the Congress government of squandering a major opportunity handed to Himachal Pradesh by the Centre and claimed that the lack of transparency and planning is now driving potential investors away.
