In order to assess the potential of investment for medical device park at Multi-Model International Cargo Hub and Airport (MIHAN) at Nagpur, the Maharashtra Airport Development Company Ltd (MADC) has appointed an agency to come out with a detailed project report (DPR) on developing a medical device park based on a cluster based approach.
As per the cluster approach, the DPR will outline framework to set up common facilities for testing and manufacturing competencies on par with country’s first medical device park – Andhra Pradesh Med Tech Zone (AMTZ) at Visakhapatnam. MADC is also in the process of earmarking the land, land rates and formulating policies on the same, according to an official associated with the development.
Setting up of a medical device park at MIHAN, Nagpur has been deliberated over the past few months comprehensively between MADC and medical device associations.
Many companies have shown interest in both Special Economic Zone (SEZ) and non-SEZ areas of MIHAN based on the discussion between Maharashtra Chief Minister Devendra Fadnavis and Union Minister for Road Transport, Highways and Shipping Nitin Gadkari for developing bulk drugs and medical devices park at MIHAN through a collaborative approach.
Both the ministers have discussed modalities and explored areas of investment for setting up common facilities of manufacturing and testing in consultation with the industry. Subsequent to which, Maharashtra Food and Drug Administration (FDA) also held talks with companies in Nashik, Aurangabad, Mumbai, Pune and Thane to explore investment opportunities for developing pharma and medical device hub at MIHAN multi-product SEZ.
MIHAN will have dedicated zones for bulk drugs park and medical devices park along with certain benefits for setting up their units in the project as a part of its policy of ease of doing business. According to officials, 1,000 acres of land in MIHAN SEZ is likely to be developed for API production, which will boost exports and deemed exports.
These ongoing developments which are also in the interest of domestic industry is supplemented by the coming up of institutions like All India Institute of Medical Sciences (AIIMS) in the coming years and Indo UK Medicity at MIHAN. This will also pave the way for development of pharma and life sciences cluster in the country.
The Indo-UK medicity currently being run in coordination with King’s College London for treating foreign patients is aimed at giving boost to medical tourism also which will bring in foreign investments.
The multi product Special Economic Zone in MIHAN is sought to be developed for both API, formulations and a medical device park. These units will have the benefits of duty free import or domestic procurement of goods for development, operation and maintenance of SEZ units, 100% income tax exemption on export income for SEZ units for the first 5 years, 50% for the next 5 years thereafter and 50% of the ploughed back export profit for the next 5 years, external commercial borrowing (ECB) by SEZ units up to US$ 500 million in a year without any maturity restriction through recognized banking channels, exemption from central sales tax, exemption from service tax, single window clearance for central and state level approvals, exemption from state sales tax and other levies as extended by the state government and 100% FDI is being allowed.