Teva abandons its project Pharma giant had proposed to invest Rs872.50 cr at Pithampur
In a setback to Indore's industrial push, pharmaceutical giant Teva has decided to abandon its plan to set up a project of Rs 872.50 crore at Pithampur. Even, US IT Major Collabera is reviewing viability of its proposed unit established at Indore.
Teva, world's largest generic drug manufacturer, has seen turbulent times recently and reportedly has put all the expansion plans in India, on hold. Representative of Teva API India Ltd recently met managing director AKVN Indore Manish Singh and expressed desire to abandon its project proposed at Pithampur SEZ.
The delegation handed a letter to AKVN Indore, requesting the latter, to refund the money deposited by it early this year for the allotment of land and under other heads. AKVN Indore managing director Singh affirmed the development and said that the company delegation requested for the refund of the deposited amount.
"The company would be suffering losses in the refund as the corporation would forfeit chunk of deposit, as per the norms," said Singh adding that the calculation of the amount to be deducted from the deposit is being done at present. An officer from AKVN Indore said that the company had applied for land allotment in 2012 and an area of 2.72 lakh sq metre was allotted to the pharma major at Pithampur SEZ in February 2013. The company had deposited a sum of Rs 40.28 crore under various heads like one year advance lease rent, maintenance charges, land premium etc.
In September 2012, Teva API had proposed to invest Rs 872.50 crore, the Israel firm Active Pharmaceutical Ingredients (API) and Intermediates had set a target of Rs 934.82 crore of export in the next five years and generation of employment for 560 persons in this period.
US IT firm Collabera that had offered investment proposal of around Rs 100 crore for establishing IT campus in Indore is also contemplating on the viability of proposed project, supposedly in the backdrop of economic meltdown in US. Sources associated with the project locally said that a company delegation would visit Indore later this month to review the project. The company had planned to build IT complex on 1 lakh sq ft at under construction IT Park at Simhasa and other facilities at additional 10-acre land inside the same park by offering jobs to 10000 persons directly and indirectly.