New York firm may invest Rs 400cr in SEZ

INDORE: A New York-based pharmaceutical company has proposed an investment of Rs 400 crore in Special Economic Zone (SEZ), Indore.
PAR Pharmaceuticals has completed paper formalities and land is likely to be allotted to the drug manufacturer within a week. The drug manufacturer plans to set up a facility for generic drugs on 40 acre land in SEZ.
Kumar Purushottam from regional Madhya Pradesh Industry Development Corporation (MPIDC) said, “Department will soon allot land to them once all the formalities are done.They have demanded about 40 acre land and is likely to get approval soon.”
The sunset clause for Special Economic Zone that restricts tax benefits to only those industries that gets operational before March 2020 has sharply restricted the footfall in SEZ.
As per the clause, exemption for Income tax at multi-product SEZ at Pithampur is restricted to companies which gets operational by 2020. Purushottam said, “Multinational companies are not much affected by the clause as they are completely export oriented and PAR already has a presence in India at Chennai.”
SEZ has become a pharmaceutical hub with presence of leading drug manufacturers such as Ipca Laboratories Ltd, Cipla Ltd, Symbiotec Pharmalab pvt ltd among others.
The industry department is also resuming bookings at Smart Industrial Park by this week after keeping it shut for close to two months.
The department has allotted 250 acre land to 45 industrial units so far at Smart Industrial Park.
Frisco Overseas, Abhay Plast and Auto LIP and Jamna Auto Industries were allotted land by Audyogik Kendra Vikas Nigam (AKVN) in October 2018. The proposed investment by all the three industries are Rs 500 crore in phases, as per the official data.
Over 6,000 crore rupees of investments was proposed by industrialists in FY 2017/18 on 130 hectares of industrial land falling under Indore region.
About 80 companies representing large, small and medium categories were allotted land in the region.