HP Govt Returns Center's INR 30 Cr Fund for Medical Device Park

The decision marks a significant shift in the state's plans for the project, which will now be funded entirely by state resources.

The Himachal Pradesh government, led by CM Sukhvinder Sukhu, has returned the Center’s INR 30 Cr investment in the development of a medical device park. 

Initially planned with central assistance, the proposed medical device park is now set to be developed in Baddi, Solan district, on a 265-acre plot. The park will require an estimated investment of INR 350 Cr. 

The decision to return the Centre's funds stems from the state's concern over the financial feasibility of the terms associated with the central investment.

CM Sukhvinder Sukhu elaborated on the reasons behind this decision, stating, “We will implement the project on terms that are favorable to the state. Had we taken the central investment, it would have meant providing land at INR 1 per square meter, electricity for INR 3 per unit and water, maintenance, and warehouse facilities free of cost for 10 years.”

Sukhu further highlighted the financial strain that the Center's terms would impose on the state. 

“It does not make financial sense for Himachal to provide electricity at INR 3 to industrialists when it buys at INR 6 per unit for half the year,” he said, referring to the state’s need to purchase electricity during the winter months when hydropower generation is reduced. 

“This is why we have returned the amount to the Centre—the terms and conditions are not conducive,” noted the Himachal Pradesh CM.

Strategic Repositioning of the Project

The location of the medical device park also carries political significance. Initially planned for Haroli in Una district, within BJP leader Anurag Thakur's Hamirpur parliamentary constituency, the project will now be developed in Baddi, Solan district, which falls under the Shimla Lok Sabha constituency. 

This shift from Hamirpur, a BJP stronghold, to a Congress-favored area reflects a strategic repositioning by the state government.

The development of the medical device park in Baddi is now set to proceed under terms that the state deems more favorable.