Lok Sabha Question No. 309 (STARRED), answered on 2026-03-13
Subject: Bulk Drug Park
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Balashowry Vallabhaneni

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

LOK SABHA STARRED QUESTION No. 309 TO BE ANSWERED ON THE 13 TH  MARCH 2026

Bulk Drug Park

## *309. Shri Balashowry Vallabhaneni:

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

- (a)  whether Bulk Drug Park was approved with financial assistance of Rs. 1000 crores for Andhra Pradesh in 2022, apart from other two States of Gujarat and Himachal Pradesh, if so, the details thereof;
- (b) whether the said scheme is due to expire soon, if so, the details thereof;
- (c)  whether  it  is  true  that  funds  have  been  released  and  utilized  in  Gujarat  and  Himachal Pradesh, but no funds have been utilized for the said Park in Kakinada (Nakkapalli) district of Andhra Pradesh;
- (d) if so, the reasons for non-utilisation of funds for the said park in Andhra Pradesh; and
- (e) the steps taken/proposed to be taken to quicken the processes to ensure that the said park in Andhra Pradesh is established before the deadline?

## ANSWER

THE MINISTER IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI JAGAT PRAKASH NADDA)

(a) to (e):           A statement is laid on the Table of the House.

Statement referred to in reply to the Lok Sabha Starred Question No. *309# (9 th  Position) for answer on 13.3.2026, raised by Shri Balashowry Vallabhaneni, regarding 'Bulk Drug Park'

(a): India has historically depended on imports of certain Active Pharmaceutical Ingredients (APIs),  Key  Starting  Materials  (KSMs)  and  Drug  Intermediates,  which  are  essential  raw materials for pharmaceutical manufacturing. In order to reduce this dependence and strengthen domestic manufacturing capacity, the Government approved the Scheme for Promotion of Bulk Drug Parks on 20 March 2020.

The  objective  of  the  scheme  is  to  establish  large  industrial  parks  with  world-class Common Infrastructure Facilities (CIF), such as effluent treatment plants, power and steam supply systems, water treatment facilities, testing laboratories, logistics infrastructure and other shared utilities. These common facilities help reduce the cost of production for pharmaceutical manufacturers.

Under the scheme, three Bulk Drug Parks were approved in FY 2022-23 in the States of  Andhra  Pradesh,  Gujarat  and  Himachal  Pradesh.  Financial  assistance  from  the  Central Government is provided for creation of common infrastructure facilities, subject to a maximum of ₹1,000 crore per park, or 70% of the project cost (90% in the case of North -Eastern and Himalayan States), whichever is less.

The key details of the approved Bulk Drug Parks are as follows:

| Approved States   | Location of Park       |   Area (in acre) | State Implementing Agency (SIA)                               |   Total Project Cost (₹ in Crore) |   CIF Cost (₹ in Crore) |
|-------------------|------------------------|------------------|---------------------------------------------------------------|-----------------------------------|-------------------------|
| Andhra Pradesh    | Nakkapalli, Anakapalli |          2001.8  | Andhra Pradesh Bulk Drug Infrastructure Corporation (APBDICL) |                           1876.66 |                 1438.89 |
| Gujarat           | Jambusar, Bharuch      |          2015.02 | Gujarat Industrial Development Corporation (GIDC)             |                           2507.02 |                 1457.01 |
| Himachal Pradesh  | Haroli, Una            |          1405.01 | Himachal Pradesh Bulk Drug Park Infrastructure Ltd. (HPBDPIL) |                           1923    |                 1118.46 |

- (b):  The  tenure  of  the  Scheme  was  from  FY  2020-21  to  FY  2024-25.    However,  on  the representations received from the State Governments concerned, the status of projects, the level of fund utilisation and the anticipated completion of projects, the tenure of the scheme first extended up to FY 2025-26 has now subsequently been extended up to FY 2026-27, in order to facilitate completion of the infrastructure development in the approved Bulk Drug Parks.
- (c) and (d): The first instalment of Central Grant-in-Aid was released to all three approved Bulk Drug Parks, including the park in Andhra Pradesh, during FY 2022-23. As of 28.02.2026, the

State of Andhra Pradesh has utilized ₹222.45 crore out of the ₹225 crore released as Central Grant-inAid, and ₹107.59 crore out of ₹132.30 crore released from State funds, towards the development of Common Infrastructure Facilities (CIF) under the Bulk Drug Park project.

Bulk drug manufacturing falls under the 'Red Category' of Environmental Categories of  Industries  and  Environment  clearance  is  a  pre-requisite  before  commencement  of  civil construction. In Andhra Pradesh, the project experienced delays primarily due to denotification of  Special  Economic  Zone  land,  which  required  relocation  of  the  Bulk  Drug  Park  from Kakinada  to  Nakkapalli.  For  the  revised  land,  Environment  clearance  was  granted  in March,2024.

Subsequently, the State Government proposed a modification in the boundary of the Bulk Drug Park at Nakkapalli for the additional land the Environment Clearance was granted on 13 th January,2026. Furthermore, initial tender for all CIF components received very poor response, necessitating repackaging and reissuing.

(e):  The Government of Andhra Pradesh has taken several steps to accelerate the development of the Bulk Drug Park at Nakkapalli. The civil works for development of basic infrastructure including roads, power supply, water supply systems, drainage networks, and utility corridors is  at  advance  stage.  To  strengthen  project  execution,  the  State  Implementing  Agency  has engaged  Assystem,  an  international  engineering  and  project  management  consultancy,  for project planning, monitoring and implementation.

The  Department  is  closely  monitoring  the  implementation  of  the  Bulk  Drug  Parks through regular review meetings under chairmanship of Secretary/Joint Secretary. Further, the Department obtains Monthly Progress Reports capturing both physical and financial progress from the State Implementing Agencies, to assess the status of implementation and identify bottlenecks,  if  any.  In  addition,  the  Department  monitors  progress  in  accordance  with  the project  timelines  through  Programme Evaluation Review Technique. The Department, also undertakes periodic site visits to the Bulk Drug Park locations to review physical and financial progress at the project sites.

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