HP ministers reject Nadda’s claims about the Medical Device Park, defend state decision

Shimla: Himachal Pradesh industries minister Harshwardhan Chauhan and technical education minister Rajesh Dharmani hit back at Union health minister Jagat Prakash Nadda, asking him to "stop misleading the people of Himachal with false claims." In a statement issued on Sunday, the ministers refuted Nadda's allegations about the Medical Device Park, clarifying that the state govt has not scrapped the Rs 350-crore project but has instead chosen to implement it independently
Chauhan and Dharmani said that the Union govt imposed several conditions on its proposed Rs 100 crore funding, which would ultimately harm the state's resources. Therefore, in the interest of the people, the state govt decided to return the central funds and proceed with the project independently.
According to the ministers, if the state accepted the central funding, it would have been compelled to provide land to industrialists at a token rate of Rs 1 per square meter. This would mean handing over 300 acres of prime land, worth approximately Rs 500 crore, for just Rs 12 lakh. "How will this serve the interest of the state? Nadda Ji must clarify this to the people of Himachal," said the statement.
Furthermore, the project's terms required the state to provide electricity to industrialists at Rs 3 per unit, despite purchasing it from the market at Rs 7 per unit. The conditions also mandated the provision of free water, maintenance, and warehousing for 10 years, all of which would cost the state crores of rupees.
The statement added that the state would not earn any GST revenue from the project, as GST is collected in the state where the products are sold, not manufactured. Additionally, the central terms allowed for a 70 per cent rebate on state GST for 10 years, leading to significant revenue loss for Himachal Pradesh.
In light of these conditions, the ministers said chief minister Sukhvinder Singh Sukhu made the decision to return the Rs 25 crore already received from the Centre, prioritising the state's long-term interests over short-term gains.
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