In a bold move prioritising the interests of Himachal Pradesh, Chief Minister Sukhvinder Singh Sukhu has called the Centre’s Nalagarh medical device park project as a “ghaate ka sauda” (loss-making deal).
Consequently, the state government has decided to return the Rs 30 crore grant received from the central government and will instead undertake the project using its own resources.
The proposed medical device park at Nalagarh in Solan district spans 265 acres and was estimated to cost Rs 350 crore. Accepting the central grant would have obligated the state to offer substantial subsidies to industrialists, including land at Rs 1 per square metre, electricity at Rs 3 per unit and free water, maintenance and warehouse facilities for 10 years.
Additionally, the state would face revenue loss due to the non-state GST (NSGST) on equipment manufactured and sold outside the state.
Chief Minister Sukhu emphasised that the state’s resources should benefit its own people, not deplete the state treasury. “The present state government would not allow the resources of Himachal Pradesh to be plundered at any cost,” said Sukhu.
“The people of Himachal Pradesh have a right over these resources, and the state government will take every step to protect their interests.”
The state’s decision to fund the project independently is expected to generate an estimated Rs 500 crore in revenue over the next five to seven years from land sales and other resources. The state government has already allocated Rs 74.95 crore for the project and plans to provide incentives to industries in the medical device park under its industrial policy.
The state government will also seek a loan from the Small Industries Development Bank of India (SIDBI) under the cluster development scheme to support the construction of the park.
In restructuring the project, 25 per cent of the land will be allocated for medical device industries, with the remaining 75 per cent for other strategic industries, ensuring broad-based industrial development in the region.
This initiative follows a similar approach in the Bulk Drug Park being built in Haroli, Una district, where the state is investing Rs 1,000 crore from its resources without any private agency’s involvement.
The Nalagarh medical device park is envisioned as a state-of-the-art industrial hub that will drive economic development, improve infrastructure, and become a steady revenue source for Himachal Pradesh.
