TNR News Network
SOLAN: The development of a proposed Medical Device Park in Nalagarh has hit a significant roadblock as the Himachal Pradesh government has returned Rs 30 crore of central funding, expressing its inability to meet key conditions set by the Union government. The state has cited financial limitations and concerns over the feasibility of the Centre’s requirements as primary reasons for this decision.
The central government had sanctioned Rs 100 crore for the project in all, with the first installment of Rs 30 crore already released. However, conditions attached to the funding included offering industrial land to investors at a token lease rate of Rs 1 per square metre, providing electricity at Rs 3 per unit and supplying water free of cost. The state government has found these terms unviable and declined to proceed under these constraints.
According to officials, the state’s Industries Department does not currently have the funds required to independently develop the Rs 349-crore project, which is planned over 1,623 bighas of land at Majholi in Nalagarh. So far, Rs 134 crore has already been spent just on levelling the land.
Adding to the complexity is an environmental clearance from the Union Ministry of Environment, which mandates that any land use must remain restricted to the pharma sector. This means that even if the plots are leased out, investors would be bound to use the space exclusively for medical or pharmaceutical manufacturing.
In a recent cabinet meeting, the Industries Department presented four possible approaches to move forward:
- Direct funding from the state government
- Execution of the project under the Public-Private Partnership (PPP) model
- Leasing a portion of the land to raise funds for development
- Exploring alternate financial models to meet the infrastructure needs
A high-powered committee led by Industries Minister Harshwardhan Chauhan had earlier been formed to evaluate the situation. The committee was to first inspect the proposed site in Nalagarh and then convene a detailed meeting with department officials at the Secretariat. Final recommendations were to be presented in a future cabinet meeting before a conclusive decision is made.
