Lok Sabha Question No. 4259 (UNSTARRED), answered on 2024-12-20
Subject: Bulk Drug Park
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Anurag Sharma

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

LOK SABHA UNSTARRED QUESTION No. 4259 TO BE ANSWERED ON THE 20 th  DECEMBER, 2024

## Bulk Drug Park

## 4259. Shri Anurag Sharma:

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

- (a)  the  details  of  the  plan  formulated  by  the  Government  to  support  the  industries  in  the upcoming Bulk Drug Parks;
- (b)  whether  there  is  any  strategy  to  ensure  the  availability  of  essential  raw  materials  at competitive prices to facilitate smooth operations for pharmaceutical manufacturers, if so, the details thereof;
- (c) whether there is any Production Linked Incentive (PLI) scheme or similar policy framework to encourage the industries to set up their units in the park and boost domestic production of critical drugs and APIs, if so, the details thereof;
- (d) whether such measures have the potential to enhance self-reliance in the pharmaceutical sector and reduce dependency on imports, if so, the details thereof;
- (e) whether the Bulk Drug Park initiative has the potential to revolutionize the industry, if so, the details thereof; and
- (f)  whether  the  success  of  this  project  depends  on  robust  policy  support,  including infrastructure,  financial  incentives  and  consistent  access  to  raw  materials,  if  so,  the  details thereof including the vision of the Government and steps in order to achieve the goals?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SMT. ANUPRIYA PATEL)

(a)  to  (f):  The  scheme  for  promotion  of Bulk  Drug Parks was approved by the Cabinet on 20.03.2020 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. It would also help in creation of economies of scale for production of bulk drugs.

Under the scheme for Promotion of Bulk Drug Parks, the Department had received proposals from thirteen states. After evaluation, proposals of Gujarat, Himachal Pradesh and Andhra Pradesh were approved. The financial assistance by the Central Govt. is subject to a maximum limit of Rs.1000 crore per park or 70% of the project cost of Common Infrastructure Facilities (CIF) (90% in case of Northeastern States and Hilly States i.e. Himachal Pradesh, Uttarakhand,  UT  of  Jammu  &  Kashmir  and  UT  of  Ladakh),  whichever  is  less.  The  fund allocated for the scheme is Rs. 3000 crores. Rs. 1000 crores grant has been approved for each of  the  selected  State,  i.e.  Gujarat,  Himachal  Pradesh  and  Andhra  Pradesh.  Construction activities are in progress in all these three selected parks. The tenure of the scheme is from FY 2020-2021 to FY 2025-2026.

Under the scheme, financial assistance from the Central Govt. is being provided for creation of Common Infrastructure Facilities (CIF) viz.-

- 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 sub-station 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  (Active  Pharmaceutical  Ingredients),  including  microbiology laboratory and stability chambers
- xii. Emergency Response Centre
- xiii. Safety/ Hazardous operations audits centre and
- xiv. Centre of Excellence etc.

The bulk drug parks are being set up in an established ecosystem to draw advantage of an efficient supply system. Gujarat is setting up Bulk Drug Park at Jambusar, Bharuch in 2015 acres of land. Bulk Drug and Chemical (PCPIR - Petroleum, Chemicals and Petrochemicals Investment Region in Dahej, Gujarat) industries exist in the vicinity of the Bulk Drug Park at Jambusar. Andhra Pradesh is setting up Bulk Drug Park at Nakkapalli, Anakapalli in 2001.80 acres  of  land  and  is  in  Visakhapatnam-Kakinada  Petroleum,  Chemical  and  Petrochemical Investment Region. Chemicals constitute the major raw materials for bulk drug production by chemical synthesis. There are three major pharma clusters at Srikakulam, Vishakhapatnam and Vijayawada district in Andhra Pradesh. Himachal Pradesh is setting up Bulk Drug Park at Haroli, Una in 1405 acres. The Baddi-Barotiwala-Nalagarh Industrial belt in Himachal Pradesh is globally known for the production of formulation drugs.

The  bulk  drug  parks  are  offering  land  and  utilities  such  as  power,  water,  effluent treatment plant, steam, solid waste management, warehouse facilities at a subsidized rate. The State Implementing Agencies (SIAs) of the three states are also offering fiscal incentives in the form of capital subsidy on fixed capital investment, interest subsidy, State Goods and Services Tax (SGST) reimbursement, exemption of stamp duty and registration charges etc.

The bulk drug parks have the potential to catalyze the pharmaceutical industry in India by reducing import dependency, lowering manufacturing costs, enhancing global competitiveness, technological advancement and improving quality standards.

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