Government gives in-principle nod to 3 states for setting up bulk drug parks

The government has given in-principle approval to the proposals of Himachal Pradesh, Gujarat and Andhra Pradesh to set up bulk drug parks. The scheme, with a financial outlay of Rs 3,000 crore, provides for financial assistance to states to establish bulk drug parks.

The Department of Pharmaceuticals has conveyed ‘in-principle’ approval to the proposals of the three states under the scheme for “Promotion of Bulk Drug Parks”, a key initiative to support the bulk drugs manufacturing in the country, the Chemicals and Fertilisers Ministry said in a statement on Thursday.

The financial assistance to the proposed facilities in Gujarat and Andhra Pradesh would be 70 per cent of the project cost of common infrastructure facilities, the statement said.

In case of Himachal Pradesh, being a hill state, financial assistance would be 90 per cent of the project cost, it added.

Maximum assistance under the scheme for one bulk drug park would be limited to Rs 1,000 crore, as per the statement.

As per the proposals submitted by the states, the park will come up in 1,402.44 acres of land in Una district of Himachal Pradesh; 2,015.02 acres of land in Bharuch district of Gujarat, and 2,000.45 acres of land in East Godavari District of Andhra Pradesh.

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

India is one of the major producers of Active Pharma Ingredients (API) or bulk drugs in the world.

The country exported bulk drugs/drug intermediates worth Rs 33,320 crore in the financial year 2021-22.

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.

(With inputs from health)