Make In India: Gujarat, Himachal And Andhra Pradesh Get Centre's 'In-Principle' Nod For Setting Up Bulk Drug Parks

The Centre has granted ‘in-principle’ approval to the proposals for setting up three bulk drug parks in Himachal Pradesh, Gujarat and Andhra Pradesh, an official release said on Thursday (1 September).

The proposals of the three states under the Scheme for “Promotion of Bulk Drug Parks”, a key initiative of the Centre to support the bulk drugs manufacturing in the country, have got 'in-principle' approval by the Department of Pharmaceuticals.

The scheme for promotion of bulk drug parks was notified in 2020 with a financial outlay of Rs 3,000 crore.

It provides for financial assistance to three states for establishing Bulk drug parks and aims to bring down the cost of manufacturing of bulk drugs by creation of world class common infrastructure facilities supported by the Centre and thereby increase the competitiveness of the domestic bulk drug industry.

The bulk drug parks to be developed under the scheme will provide common infrastructure facilities at one place thereby creating a robust ecosystem for the bulk drug manufacturing in the country and also reducing the manufacturing cost significantly.

The scheme is expected to encourage domestic manufacturing of bulk drugs to reduce import dependence and to establish a dominant position in the global market by providing easy access to standard testing and infrastructure facilities, the Ministry of Chemicals and Fertilisers said in a release.

Under the scheme, proposals were received from 13 states, the ministry said.

The Department was guided by an Advisory Committee under CEO, NITI Aayog in the appraisal of the proposals, based on the quantitative as well as qualitative methodology, it added.

The financial assistance to the proposed Bulk Drug Park in Gujarat and Andhra Pradesh would be 70 per cent of the project cost of common infrastructure facilities.

In case of Himachal Pradesh, being a hilly state, financial assistance would be 90 per cent of the project cost, the ministry said.

Maximum assistance under the scheme for one bulk drug park would be limited to Rs 1000 crore, it added.

As per the proposals submitted by the three states, the bulk drug parks will be established in 1,402.44 acres of land at tehsil Haroli in HP's Una district, 2,015.02 acres of land at tehsil Jambusar in Gujarat's Bharuch district.

In Andhra Pradesh, the bulk drug parks will be set up at 2,000.45 acres of land at K P Puram and Kodhada of Thondagi Mandal of East Godavari District.

These three states were instructed to submit their detailed project reports in next 90 days, to appraise the same and to process for issuance of final approval under the scheme, the ministry said.