Pharmaceutical companies are scheduled to hold talks with Maharashtra Chief Minister Devendra Fadnavis and Union Minister for Road Transport, Highways and Shipping Nitin Gadkari towards exploring investment opportunities for developing pharma hub at Multi-Model International Cargo Hub and Airport at Nagpur (MIHAN) multi-product Special Economic Zone (SEZ).

This comes close on the heels of Maharashtra Food and Drug Administration (FDA)'s meetings with pharma companies held at Nashik, Aurangabad, Pune, Thane and Greater Mumbai on similar lines towards boosting bulk drugs production.

Meanwhile, a technical feasibility study is also underway for setting up of medical device park at MIHAN which will also be equipped with common facilities for testing and manufacturing competencies on par with Andhra Pradesh Med Tech Zone (AMTZ) at Visakhapatnam in Andhra Pradesh.

The MIHAN management is also in the process of earmarking the land, land rate and formulating policies on the same for developing medical device park.  Currently, medical device manufacturing by few players have also started at MIHAN. According to officials, 1000 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 an area of 150 acres in the coming years and Indo UK Medicity in an area of 152 acres at MIHAN. This will 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 which will bring in foreign investments. Setting up of a medical device park at MIHAN, Nagpur has been deliberated comprehensively between MIHAN management team and medical device associations.

Seeing the potential in terms of investment and business prospects, the Maharashtra Airport Development Company Ltd (MADC) is inviting pharmaceutical companies to set up their units in MIHAN project. The project will have a dedicated zone along with certain benefits for the pharmaceutical companies setting up their units in the project.

The multi product Special Economic Zone (SEZ) in MIHAN is sought to be developed for both API and formulations. These 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 (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 per cent FDI is being allowed.