The Centre?s move to withdraw excise duty exemption has come as damper for pharmaceutical units in Himachal Pradesh, which had been lured from Punjab and Haryana with special concessions and tax holiday.
Upset by the move, a number of units had threatened to return to Punjab and Haryana where the governments are trying to woo them with several concessions. For instance Nectar Pharma Group, chairman, Sanjiv Goyal had called on Punjab CM Parkash Singh Badal, who has offered land and a host of concession. Nectar Group has promised to invest over Rs 900 crore in Punjab.
Nearly, 250 small and medium pharma units had moved from Punjab and Haryana to Himachal Pradesh. This had led to discord among the state governments. In fact the after taking the charge Punjab CM, Parkash Singh Badal had written to the Prime Minister, Manmohan Singh demanding a ?level playing field? and concessions at par with Himachal Pradesh and Uttaranchal.
About Rs 4,500 crore had been invested in these 350-odd units so far. Of that Rs 3,000 crore had been provided by banks. Stakes are high not only for entrepreneurs but also the financial institutions of the region.
About 150 ancillary units engaged in packaging and other services of the drug companies will also be affected.
The Baddi-Barotiwala belt had emerged as the biggest pharmaceutical hub in the Asia as the industries from all over the country had shifted to avail the incentives and concessions provided by the state.