Maharashtra government approves incentive scheme for bulk drug park in Raigad, medical equipment park in AurangabadUpdated: Oct 30, 2020, 00:20 IST
The Maharashtra government on Thursday approved a 10-year special incentives scheme to set up a bulk drug park at Raigad near Mumbai and medical equipment manufacturing park at Auric City in Aurangabad.
The Centre has proposed three bulk drug parks to be set up in the country to reduce the dependence of Indian drug manufacturing companies on China. It has asked the states to send their proposal for incentive schemes and the top three will be selected by the Centre for setting up the bulk drug park, said a senior state minister, on condition of anonymity.
If selected, the state has proposed the bulk drug park to be set up in Raigad district and has earmarked 5000 acre in 17 villages in Roha and Murud tehsils for the project, he added.
If approved, the projects will offer a big scope for production of drugs as well as medical equipment in the state, the official said.
The estimated cost of the bulk drug park and medical equipment manufacturing park is ₹2,442 crore and ₹424 crore, respectively.
In a bid to promote indigenous manufacturing of drugs and medical equipment, the Central government in July has announced guidelines and schemes for the development of bulk drug and medical device parks.
According to the cabinet decision, the state has decided to waive of 100% goods and services tax (GST) on the first sale of the product. It has waived electricity fees against power consumption for next ten years, a waiver in stamp duty for buying a plot, taking a plot on lease, bank loan and other related activities. The state has also decided to give a concession of ₹1.5 per unit in power tariff for a period of 10 years against power consumption.
Besides, they will also get a concession of ₹2 per unit against power consumption for sewage management, water supply, solid waste management and other related activities for 10 years. This particular concession will be provided by the Maharashtra Industrial Development Corporation (MIDC) against which the state government will pay ₹50 crore per annum to the industrial body. The state government will also assist MIDC in getting a license for power supply for the parks, said an official from the state industries department.