Post tax holiday in HP, Raj seeks to attract pharma cos

JAIPUR:As tax holiday draws to a close at Baddi in Himachal Pradesh for the pharma industry , Rajast han is eyeing to cash in on the opportunity and at tract the pharmaceutical units in the state.
For the purpose, the sta te has developed a special pharma zone in Udaipur Moreover, RIICO has alrea dy identified 85 hectares (210 acres) of undeveloped land for the pharmaceuti cal-based industries for al lotment at three places in Banswara, adjoining Gujarat.
“In Baddi, most probab ly in 2016, the tax holiday for pharmaceutical indu stries will end. Our effort will be to attract the pharmaceutical companies to enter Rajasthan,“ Niraj Kumar Pawan, managing director (additional char ge), Rajasthan Medical Ser vices Corporation Limited (RMSCL), said.
Baddi in Himachal Pra desh has a cluster of pharma companies, but now many companies are op ting for other locations due to various reasons, inclu ding withdrawal of tax be nefits. The companies were enjoying tax benefits since 2003.
Under the free medici ne scheme, there are many medicines which are ma nufactured in Baddi. Now, the state government is taking it as an opportunity to tap the investment in pharma sector. During the recently concluded Resurgent Rajasthan, the state tried to attract the private pharma companies by claiming that it has tremendous opportunities for manufacturing of pharma, formulations, medical devices and equipment.
The pharma companies were informed that the state has close proximity to NCR, has developed industrial parts and excellent connectivity and logistics, availability of skilled labour and proactive government which makes the entire ecosystem attractive to establish manufacturing units.
Moreover, the eligible manufacturing companies which will enter the state will be granted benefits and incentives related to VAT, CST, land tax, electricity duty , stamp duty and various other benefits as per the provisions under the Rajasthan Investment Promotion Scheme 2014.