Reverse migration to Karnal pharma park

Parveen Arora
Tribune News Service
Karnal, March 5

Pharmaceutical industrialists, who had shifted to Himachal Pradesh and Uttarakhand more than a decade ago, are now coming back, primarily because of two reasons — uniform GST and the Haryana Government setting up a pharma park over 100 acres of land in Karnal district. 

At least six industrialists are set to begin their second innings in the coming  months. They are expected to invest Rs 125 crore. Also, 40 new entrepreneurs have shown interest.

“Land for the park has been earmarked by HSIIDC near Tarori. Six industrialists from Karnal with units in other states have shown interest,” RL Sharma, head of Karnal Pharmaceutical Manufacturing Association, said.

As of now, Karnal has 57 small, medium and large industries manufacturing allopathic, ayurvedic and herbal drugs. In 2005, several industrialists had winded up business and shifted to Himachal Pradesh or Uttarakhand where they were exempted from paying central excise duty and income tax for 10 years. 

Ram Gopal Goel runs four pharma units in Baddi. He now intends to return to Haryana and set up industry in Karnal.

Rajeev Mukul, chairman, Zee Laboratories, Paonta Sahib, cites cheap labour, affordable transportation cost and easy availability of water as reasons for him expanding business back home. “Owing to high labour and transportation costs, it is not easy to survive in other states. I plan to set up three more units, all in my native town Karnal. Construction on one of the units has already begun,” he says. 

GST THE GAME-CHANGER

• Karnal has 57 pharma units at investment of Rs 250 crore
• At least 10 pharma units in Karnal had shifted to “tax-free” Himachal Pradesh and Uttarakhand after 2005
• Six of these units have now given consent to return to their parent state after the introduction of GST
• Expenditure incurred on one micro unit is an estimated Rs 2-3 crore; in case of a small unit, it is Rs 5-8 crore
• Pharma units in Haryana generate direct and indirect employment  to 10,000-12,000 people