Lok Sabha Question No. 2454 (UNSTARRED), answered on 2026-02-13
Subject: Bulk Drug Parks
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Malaiyarasan D

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

## LOK SABHA UNSTARRED QUESTION No. 2454 TO BE ANSWERED ON 13 th  FEBRUARY, 2026

Bulk Drug Parks

## 2454. Shri Malaiyarasan D:

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

- (a) the current status of the Bulk Drug Parks promoted under the Production Linked Incentive
- (PLI) Scheme including locations identified and operational status in Tamil Nadu;
- (b) the total investment committed and employment generated so far in such Bulk Drug Parks in the said State;
- (c) the incentives and support provided to MSMEs and start-ups within the said parks;
- (d)  whether  any  steps  have  been  taken  by  the  Government  to  promote  research  and development and innovation in bulk drug manufacturing in the said State; and
- (e) the future plans and timeline for establishing additional Bulk Drug Parks in the State?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY  OF  CHEMICALS  AND FERTILIZERS

## (SMT. ANUPRIYA PATEL)

(a) to (c): Sir,  there  is  no  provision  for  Bulk  Drug  Parks  under  the  Production  Linked Incentive (PLI) schemes implemented by the Department of Pharmaceuticals. However, the Department  of  Pharmaceuticals  is  implementing  another  scheme,  namely  the  scheme  for Promotion of Bulk Drug Parks, with a budgetary outlay of ₹3,000 crore, under which three bulk drug parks have been approved and are at various stages of development in the States of Andhra Pradesh, Gujarat and Himachal Pradesh, through their respective State implementing agencies. The total project cost of these parks is over ₹6,306.68 crore, with Central assistance to the tune of ₹1,000 crore each for creation of common infrastructure facilities. These parks envisage land and utilities such as power, water, effluent treatment plant, steam, solid waste management and warehouse facilities at a subsidised rate to bulk drug or API manufacturers for units set up in the park. The State implementing agencies of the States concerned have also offered fiscal incentives in the form of capital subsidy on fixed capital investment, interest subsidy,  State  Goods  and  Services  Tax  reimbursement,  exemption  of  stamp  duty  and registration charges, etc. Further, the scheme provides for applicants for allotment of land in the parks to set up units for manufacturing products prioritised in the PLI Scheme for Bulk Drugs to have priority in land allotment.

While no Bulk Drug Park has been approved for Tamil Nadu under the said scheme, the Government is promoting infrastructure development and investment in the pharmaceutical sector across the country, including Tamil Nadu, through other initiatives such as Scheme for Promotion of Medical Devices Parks and Production Linked  Incentive (PLI) Scheme. The details of these schemes are as under:

(i) Scheme  for  Promotion  of  Medical  Devices  Parks:  The  Scheme  for  Promotion  of Medical Devices Parks aims to provide easy access to world-class, common infrastructure facilities to medical device units set up in medical device parks. Under this scheme, three parks are being set up and are at an advanced stage of development in Greater Noida, Uttar Pradesh, Ujjain, Madhya Pradesh and Kanchipuram, Tamil Nadu. The total project cost of these Parks is ₹871.11 crore, with Central grant -inaid to the tune of ₹100 cro re each for creation  of  common  infrastructure  facilities,  which  is  expected  to  enhance  industry's competitiveness  and  reduce  production  costs  through  optimisation  of  resources  and economies  of  scale.  Civil  construction  for  the  three  parks  is  at  the  final  stages.  As  of December 2025, 199 medical devices manufacturers have been allotted land in the three parks in a 306.64 acre area and 34 units have commenced construction of their plants.

## (ii)  Production Linked Incentive (PLI) Scheme:

1. PLI Scheme for promotion of domestic manufacturing of critical KSMs/DIs/APIs in India (commonly known as the PLI Scheme for Bulk Drugs): The scheme, which has a total budgetary outlay of ₹6,940 crore, aims to avoid disruption in supply of critical active pharmaceutical ingredients (APIs) used to make critical drugs for which there are no alternatives by reducing supply disruption risk due to excessive dependence on single source. The scheme provides financial incentives on the sale of 41 identified KSMs/ DIs/ APIs products manufactured through greenfield projects set up under the scheme. Under the scheme, 48 projects are approved for manufacturing of 33 bulk drugs, out of which 2 projects are approved from the State of Tamil Nadu.

2. PLI  Scheme  for  Pharmaceuticals:  The  scheme,  which  has  a  total  budgetary outlay of ₹15,000 crore, aims to enhance India's manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high-value goods in the pharmaceutical sector. It incentivises production of high-value medicines such as biopharmaceuticals, complex generic drugs, patented drugs or drugs nearing patent expiry, auto-immune drugs, anti-cancer drugs, etc. as well as production of KSMs/ DIs/ APIs other than those notified under the PLI Scheme for Bulk Drugs, thereby contributing to self-reliance. Under the scheme, 55 applicants are approved for manufacturing of pharmaceuticals  and in-vitro  medical  devices  (IVDs)  manufactured through both greenfield and brownfield projects. 16 manufacturing units are situated in the State of Tamil Nadu.
3. Production Linked Incentive (PLI) scheme for promoting domestic manufacturing of Medical Devices: The scheme has a budgetary outlay of ₹3,420 crore and a  five-year  performance-linked incentive period from  FY2022-23 to FY2026-27. Under the scheme, selected companies are eligible for financial incentive for incremental sales of domestically manufactured medical devices in the radiotherapy, imaging device, anaesthesia, cardio-respiratory and critical care and implant device segments, for a period

of  five  years.  Under  the  scheme,  out  of  total  28  approved  projects  two  have  been approved in Tamil Nadu.

(d): The  Department  of  Pharmaceuticals  is  implementing  the  scheme  for  Promotion  of Research   and Innovation in PharmaMedTech Sector (PRIP) with an approved outlay of ₹ 5000 crore and scheme duration of up to the financial year 2029-30 to strengthen research and innovation by supporting projects across the innovation lifecycle from early research to product development and commercialisation.   Under the scheme, seven Centres of Excellence (CoEs) has  been  established,  one  at  each  National  Institute  for  Pharmaceutical  Education  and Research, with a focus on strengthening research infrastructure, accelerating innovation, and enhancing industry-academia collaboration in identified areas.  Of these, the CoE at NIPER Hyderabad is focused on Bulk Drugs.

The  scheme  also  provides  financial  assistance  to  industries,  MSMEs,  start-ups  for eligible  R&D  projects  for  the  development  or  expeditious  validation  of  new  medicines; complex generics and biosimilars; and novel medical devices in identified priority areas taken up  either  in-house  or  in  collaboration  with  the  academia.    The  Scheme  would  incentivize eligible R&D and innovation projects and promote such activities across States including the state of Tamil Nadu.

(e): At present, there is no such proposal of the Government of India to establish a Bulk Drug Park in the State of Tamil Nadu under the Scheme for Promotion of Bulk Drug Parks.

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