The inter regional committee set up by the Maharashtra government to look into setting up of pharma hub in multi product Special Economic Zone (SEZ) in Multi-Model International Cargo Hub and Airport at Nagpur (MIHAN) will soon submit its report to the government.

The panel was formed by the government following demand by Vidarbha Drug Manufacturers Association to set up pharma hub comprising logistics park, manufacturing park, research park in Mihan to benefit pharma industry. The committee is going to submit its report to the state government soon, said Ravleen Singh Khurana, a member of the committee and managing director, Nitika Pharmaceutical Specialities Pvt Ltd.

The multi product SEZ in Mihan is for both API and formulations. The units will have the benefits of duty free import or domestic procurement of goods for development, operation and maintenance of SEZ units; 100 per cent income tax exemption on export income for SEZ units for the first 5 years, 50 per cent for the next 5 years, thereafter and 50 per cent of the ploughed back export profit for the next 5 years; external commercial borrowing 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 per cent FDI allowed.

Khurana, who is also secretary of Vidarbha Drug Manufacturers Association, said Lupin had set up US FDA plant in Mihan. Apart from Lupin, there are a number of small and medium pharma companies who have set up their facilities in Mihan. The pharma hub will provide an ecosystem for pharma industries' growth. With GST rolling up, pharma industries having national distribution facilities in Nagpur which is centrally located will have added advantages, he said.