Govt approves 3 bulk drug parks in Himachal Pradesh, Gujarat & Andhra

The govt has conveyed ‘in-principle’ approval to the proposals of three states, Himachal Pradesh, Gujarat and Andhra Pradesh, for setting up Bulk Drug Parks
Govt approves 3 bulk drug parks in Himachal Pradesh, Gujarat & Andhra
Govt approves 3 bulk drug parks in Himachal Pradesh, Gujarat & Andhra

New Delhi: The Department of Pharmaceuticals has conveyed 'in-principle' approval to the proposals of the three states, Himachal Pradesh, Gujarat and Andhra Pradesh, under the Scheme for "Promotion of Bulk Drug Parks", a key initiative to support the Bulk Drugs manufacturing in the country, an official statement said on Thursday. The scheme, with a financial outlay of Rs 3,000 crore notified in 2020, provides financial assistance to three states for establishing Bulk Drug Parks and aims to bring down the cost of manufacturing bulk drugs through the creation of world-class common infrastructure facilities supported by the Central government and thereby increase the competitiveness of the domestic bulk drug industry.

The Indian pharmaceutical industry is the 3rd largest in the world by volume. India exported pharmaceuticals worth Rs 1,75,040 crore in the financial year 2021-22, including bulk drugs/ drug Intermediates. Also, India is one of the major producers of Active Pharma Ingredients (API) or bulk drugs in the world. India exported bulk drugs/ drug intermediates worth Rs 33,320 crore in the financial year 2021-22.

Bulk drug parks

However, the country also imports various Bulk Drugs/ APIs for producing medicines from various countries. Most of the imports of the Bulk Drug/APIs being done in the country are because of economic considerations.

The government strives to minimise the country's dependence on imports and to give fillip to indigenous manufacturing. In order to make the country self-reliant in APIs and drug intermediates, the Department of Pharmaceuticals is implementing various schemes and one of the key interventions is the scheme for Bulk Drug Parks.

The Bulk Drug Parks to be developed under the scheme will provide common infrastructure facilities in one place, thereby creating a robust ecosystem for bulk drug manufacturing in the country and also reducing the manufacturing cost significantly. This 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. This scheme will also help the industry meet the standards of the environment at a reduced cost through innovative methods of the common waste management system and to exploit the benefits arising due to optimisation of resources and economies of scale.

13 states sent proposals

Under the scheme, proposals were received from 13 states. The Department was guided by an Advisory Committee headed by the NITI Aayog CEO in the appraisal of the proposals, based on the quantitative as well as qualitative methodology.

The financial assistance to the proposed bulk drug park in Gujarat and Andhra Pradesh would be 70 percent of the project cost of common infrastructure facilities. In case of Himachal Pradesh, being a hilly state, financial assistance would be 90 percent of the project cost. Maximum assistance under the scheme for one Bulk Drug Park would be limited to Rs 1,000 crore.

As per the proposals submitted by these states, the bulk drugs will be established in 1402.44 acres of land at Tehsil Haroli, Una district in Himachal Pradesh, 2015.02 acres of land at Tehsil Jambusar, Bharuch district in Gujarat and 2000.45 acres of land at KP Puram & Kodhada of Thondagi Mandal of East Godavari district in Andhra Pradesh. These three states were instructed to submit their detailed project reports in the next 90 days, to appraise the same and to process the issuance of final approval under the scheme.

The scheme reflects the spirit of co-operative federalism where the Central government and state governments will partner to develop the bulk drug parks for better performance of the sector.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)

PSU Watch