Himachal Government to set up Rs 1000 Crore bulk drug park with State Resources

Shimla, Aug 28,

The Himachal Pradesh government has decided to establish a Rs 1000 crore Bulk Drug Park in Una, funded entirely from the state’s own resources. This announcement was made by Chief Minister Sukhvinder Singh Sukhu during the state assembly session, responding to a query raised by Shahpur MLA Kewal Pathania.

The Chief Minister revealed that the government opted to proceed independently on this Central government project after reviewing the Memorandum of Understanding (MOU) signed by the previous BJP administration. The Chief Minister stated that the terms of the MOU were not favorable to the state’s interests, prompting the decision to go solo.

Intervening in the discussion, Chief Minister Sukhu expressed regret that the state government had to undertake this project under challenging circumstances, particularly in light of concerns that industries might relocate due to increased power tariffs. To mitigate this, the Chief Minister convened a meeting with the concerned minister and Deputy Chief Minister, deciding to offer power at a reduced rate of Rs 3 per unit for the bulk drug park.

Criticizing the previous BJP government’s decision to offer power at just Rs 1 per unit under the MOU, Sukhu pointed out that the state had to purchase power at Rs 7 per unit during the lean season. He argued that this arrangement was not viable. Instead, the current government plans to provide land for the drug park at a lease rate of Rs 1 per square foot, with other facilities provided at no cost.

The Chief Minister also accused the previous BJP government of compromising state interests in other projects, including Dhaulasidh, Sunni, and Luhri, by signing unfavorable MOUs. He emphasized that if the Central government does not support the establishment of similar units, the state is prepared to proceed with its own resources.

Industries Minister Harshwardhan Chauhan, responding to allegations made by former Chief Minister Jai Ram Thakur, clarified that the state government is not obligated to adhere to the MOUs signed by the previous administration. He noted that while the Prime Minister had inaugurated the bulk drug park during the BJP’s tenure, the current government is not required to involve the Central government in the inauguration of each unit.

Chauhan further explained that 13 states participated in the bidding process for the bulk drug park following the medicine shortages during the COVID-19 pandemic, and Himachal Pradesh was awarded the project. He acknowledged that while the state might face short-term losses, in the long term, it stands to gain significantly in terms of revenue from GST and other taxes.

He added that subsidized water, power, and other concessions would be available for a 10-year period, after which market rates would apply. The project, with a total cost of Rs 1923 crore, has a completion target of March 31, 2026. Chauhan assured that the project would be completed on time, with mandatory guidelines followed transparently. He also mentioned that Rs 50 crore has already been approved by the Chief Minister, and MOUs with reputed international companies have been signed in the UAE and Mumbai.

Former Chief Minister Jai Ram Thakur credited Prime Minister Narendra Modi for bringing the prestigious project to Himachal Pradesh. He emphasized that during the previous government, industries were not provided with free water and power supplies.

BJP leader Satpal Singh Sati raised concerns about the government’s decision to increase power tariffs, warning that it could lead to an exodus of industrial units and pharmaceutical companies. He cautioned that this could put the livelihoods of lakhs of people in the state at risk.