India big drug park: 2,300 crore in Bharuch by the Chief Minister of the state, Bhupendra Patel. On Friday, he announced setting up the country’s first massive drug park at an estimated cost. The Government of Gujarat is setting up a Bulk Drugs Park under the guidelines of the Bulk Drug Parks Promotion Scheme issued by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India on 27 July 2020.
Manufacturing of drugs, active pharmaceutical ingredients and critical pharmaceutical ingredients, said Gujarat Industrial Development Corporation (GIDC) Vice Chairman and MD M Thennarasan. The estimated cost of the project is Rs 2,300 crore. 1,000 crores will be spent for this. He said the Center has given in-principle approval to the state government’s proposal to set up massive drug parks on financial grants.
Apart from Gujarat, the Department of Pharmaceuticals has given in-principle approval to proposals for pharma parks in Himachal Pradesh and Andhra Pradesh. The central government scheme aims to provide financial assistance to three states to set up bulk drug parks and reduce the cost of manufacturing bulk drugs by creating world-class common infrastructure facilities.
GIDC, a wholly owned corporation of the Government of Gujarat, has been designated as the State Implementing Agency (SIA) for developing the upcoming park at Jambusar in Bharuch district. A senior government official familiar with the matter said that the Gujarat Pharma Park project will be ready within two years.
Gujarat contributes USD 25 billion of the country’s pharma exports and 30-31% of the domestic market, which is pegged at another USD 25 billion. The country’s pharma sector has been hit by an unprecedented rise in input costs over the past one-and-a-half years.
The industry is now pinning its hopes on the pharma parks being set up by the Center to reduce India’s dependence on imports, said a senior official of the Indian Drugs Manufacturers Association (IDMA). About 300 industries, mostly SMEs, are expected to set up shop here, he said.
The pharma sector got some respite earlier this year from the National Drug Price Regulator, which allowed an annual increase of 10.76% in the Wholesale Price Index (WPI). As a result, the prices of more than 800 scheduled drugs have increased, giving much-needed relief to the sector, he said. He said the industry is under pressure with rising prices of imported raw materials during the Covid-19 restrictions.