Nadda 'misleading' people over funds for medical device park project, claim Himachal Pradesh govt

Shimla: The Congress government in Himachal Pradesh lashed out at Union Health Minister J P Nadda on Sunday over his claim about the non-utilisation of Central funds for building a medical device park in the state, terming it an attempt at "misleading" people.

Earlier in the day, Nadda, who also the BJP's national president, chastised Sukhvinder Singh Sukhu dispensation in the state as the "most corrupt" and claimed that it had returned to the Centre a sum of Rs 25 crore allocated for the construction of the medical device park.

Also, the state government failed to utilise Rs 225 crore released till 2023 out of the Rs 1,000 crore allocated to the state for a bulk drug park, he has alleged.

Reacting to the accusations, Himachal Pradesh Industries Minister Harshwardhan Chauhan and Technical Education Minister Rajesh Dharmani, in a joint press conference, underlined that the Congress government has decided to execute the project independently.

The Himachal Pradesh government has not cancelled the Rs 350-crore project but has chosen to execute it independently in the best interest of the state, they stated.

The Centre's Rs 100-crore funding for the project came with several conditions that would have placed a heavy financial burden on the state, the ministers claimed while explaining the reasons behind the decision.

"The central terms required us to allocate 300 acres of prime land, worth nearly Rs 500 crore, to industrialists at a nominal rate of Re 1 per square meter, amounting to just Rs 12 lakh in total," Chauhan said.

"Nadda Ji must explain how giving away such valuable land for peanuts serves Himachal's interests," he added.

The two ministers further informed the press conference that the Centre's conditions included providing electricity to companies at a subsidized rate of Rs 3 per unit, even though the state purchases power at Rs 7 per unit.

"Additionally, the project demanded free water, maintenance, and warehousing facilities for 10 years, expenses that would have cost the state exchequer crores of rupees," Chauhan added.

The two ministers further stated that the state would not have benefited from GST revenue, as taxes are collected in the state where products are sold, not manufactured.

Furthermore, the Centre's proposal allowed a 70 per cent rebate on state GST for a decade, further impacting the state's revenue, they said.

"In light of these conditions, Chief Minister Sukhu made the prudent decision to return the Rs 25 crore already received from the Centre and proceed with the project using state resources," Dharmani said.

The two ministers also emphasised that the Congress government was committed to long-term gains over short-term benefits.