The Centre has agreed to relocate the proposed bulk drug park from Kakinada to Nakkapalli in Anakapalli district.
The state government has sent the proposal to relocate the bulk drug park keeping in view of availability of government land in Nakkapalli. The Centre will create infrastructure at a cost of 1,500 crore to attract pharma industries.
AP is one of the three states that bagged prestigious bulk drug parks in the country. Himachal Pradesh and Gujarat are the other two states which got the projects.
AP had secured the bulk drug project amidst intense competition among the states through rigorous scrutiny and evaluation of the DPRs by a high-level team constituted by the Union cabinet. AP wanted to set up the bulk drug park at Thondagi in Kakinada district while proposing to acquire some extent of the land from private individuals. However, the Centre wanted that the park to be located completely on government land which should be litigation-free. Subsequently, the state government proposed that the land is available at Nakkapalli in Anakapalli district.
The state government would offer an interest subsidy of 3% on the term loan taken for fixed capital investment by new MSMEs for five years and reimbursement of 100% of net SGST accrued to the state for 10 years for those firms set up their shops in the bulk drug park.
Bulk Drug Park is a key initiative to support the bulk drugs manufacturing in the country. The project is aimed at bringing down the cost of manufacturing of bulk drugs by creation of world class common infrastructure facilities.
The Indian pharmaceutical industry is the third largest in the world by volume as India exported pharmaceuticals worth 1,75,040 crore in the financial year 2021-22, including bulk drugs/ drug intermediates.
Also, India is one of the major producers of Active Pharma Ingredients (API) or bulk drugs in the world. India exported Bulk Drugs/ Drug Intermediates worth Rs. 33,320 crore in financial year 2021-22.
However, the country also imports various bulk drugs/ APIs for producing medicines from various countries. Most of the imports of the bulk drug/APIs being done in the country are because of economic considerations. The new projects are expected to minimize country’s dependence on imports and to give fillip to indigenous manufacturing.
