Lok Sabha Question No. 3439 (UNSTARRED), answered on 2021-03-16
Subject: Bulk Drug Parks
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Chandra Prakash Joshi

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION No. 3439 TO BE ANSWERED ON THE 16 th  March, 2021

## Bulk Drug Parks

## †3439. SHRI CHANDRA PRAKASH JOSHI:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) the details of the scheme regarding bulk drug parks;
- (b) the status of bulk drug parks in the country, State-wise;
- (c) the details of the benefits likely to be obtained from these parks; and
- (d) the budget allocated for setting up of drug parks and the details of the activities likely to be carried out in these parks, location-wise?

## ANSWER

## MINISTER IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI D. V. SADANANDA GOWDA)

(a), (b) & (d): Scheme for Promotion of Bulk Drug ParksDepartment intends to facilitate setting up of Three (3) Bulk Drug Parks in the country with the objective to bring down the cost of manufacturing of bulk drugs by creation of world class common infrastructure facilities. Under  the  scheme,  financial  assistance  would  be  provided  for  creation  of  Common Infrastructure Facilities (CIF) like (i) Central Effluent Treatment Plant(s) (CETP) (ii) Solid waste management (iii) Storm water drains network (iv) Common Solvent Storage System, Solvent recovery and distillation plant (v) Common Warehouse (vi) Dedicated power substation  and  distribution  system  with  the  necessary  transformers  at  factory  gate  (vii)  Raw, Potable and Demineralized Water (viii) Steam generation and distribution system (ix) Common cooling  system  and  distribution  network  (x)  Common  logistics  (xi)  Advanced  laboratory testing  Centre,  suitable  for  even  complex  testing/  research  needs  of  APIs,  including microbiology laboratory and stability chambers (xii) Emergency Response Centre (xiii) Safety/ Hazardous operations audits centre and (xiv) Centre of Excellence etc. in any upcoming Bulk Drug Park promoted by State Government/State Corporation. The financial assistance by the centre is subject to a maximum limit of Rs.1000 Crore per park or 70% of the project cost of CIF ( 90% in case of North Eastern States and Hilly States i.e. Himachal Pradesh, Uttarakhand, UT of Jammu & Kashmir and UT of Ladakh), whichever is less. The total financial outlay of the scheme is Rs. 3000 crore and the tenure of the Scheme is from 2020-21 to 2024-25. The Scheme would be implemented through a one-time grant-in-aid to be released for creation of identified Common Infrastructure Facilities to a State Implementing Agency (SIA) set up by the  State  Government  for  implementing  the  Bulk  Drug  Park  Project.    State  Implementing Agency  (SIA)  shall  be  a  legal  entity  (with  minimum  51%  equity  shareholding  of  State Government in the paid-up capital of SIA) set up by the State Government for the purpose of implementing the Bulk Drug Park Project and responsible for the day to day management of the  Bulk  Drug  Park.  The  Department  has  received  13  proposals  from  Uttar  Pradesh,Tamil Nadu,Telangana,  Karnataka,  Maharashtra,  Gujarat,  Madhya  Pradesh,  Rajasthan,  Punjab,

Haryana,Himachal Pradesh,Andhra Pradesh and Odisha seeking financial assistance under the scheme which are under evaluation.

The detailed guidelines of the scheme are available on the website of the Department of Pharmaceuticals i.e. http://pharmaceuticals.gov.in.

- (c): It  is  expected  that  the  implementation of the scheme would facilitate the  growth of domestic bulk drug industry by increasing the competitiveness, easy access to standard testing facilities and value addition in the domestic bulk drug industry. The intended benefits include increased  self-reliance  of  the  country  in  raw  materials  of  medicines  contributing  to  drug security of the country. The scheme would also contribute to enhanced penetration in global value chains by increasing the competitiveness of domestic bulk drug industry.

xxxxx