After the Central government recently extended the completion period for developing the three bulk drug parks as part of the Scheme for Promotion of Bulk Drug Parks by an additional year, progress has been made in building all the designated parks, according to the Union ministry of chemicals and fertilizers.
The deadline extension was necessary because the Andhra Pradesh project experienced delays in spending the first allotment of grants from the Central government due to a relocation. The Ministry has now announced that, as of November 2024, Andhra Pradesh has utilized funds amounting to 24.60 crore, including the state’s contribution.
“The budget for the scheme totals Rs. 3,000 crore, with each chosen state—Gujarat, Himachal Pradesh, and Andhra Pradesh—receiving a Rs. 1,000 crore grant. Construction activities are underway across all three selected parks,” stated Anupriya Patel, Minister of State in the Ministry of Chemicals and Fertilizers, during a session in Rajya Sabha.
For the Andhra Pradesh bulk drugs park, the anticipated full project cost is Rs. 1,876.66 crore, including a Common Infrastructure Facilities (CIF) cost of Rs. 1,438.89 crore. The Central government has issued grants amounting to Rs. 225 crore to this state.
In Gujarat, where the full project is expected to cost Rs. 2,507.02 crore and the CIF development is pegged at Rs. 1,457.01 crore, a total of Rs. 150.60 crore has been utilized by November 2024, counting the state’s share. So far, the Central government has disbursed Rs. 299.25 crore in grants to this state.
As of the end of November 2024, Himachal Pradesh has utilized Rs. 41.55 crore, including the state’s share. The anticipated cost for their project is Rs. 1,923 crore, with a CIF estimated cost of Rs. 1,118.46 crore. Grants of Rs. 225 crore have been allocated by the Central government to this state.
During a meeting held on July 9, 2024, the Scheme Steering Committee (SSC) sanctioned an extension of the initiative’s timeline from FY 2024-25 to FY 2025-26 for the thorough execution and finalization of the bulk drug parks in the involved states.
The project in Andhra Pradesh, initially approved in Kakinada in November 2022, was reassigned to a new site in Nakkapalli, Anakapalli district as of December 7, 2023.
The Nakkapalli bulk drug park, ideally positioned 75 kilometers southwest of Visakhapatnam, boasts excellent connectivity via road, rail, port, and airport, located 4.5 kilometers from NH-16, 3 kilometers from the Kolkata–Chennai rail line, 60 kilometers from Gangavaram Port, and 66 kilometers from Visakhapatnam International Airport, the Minister confirmed.
The state government of Andhra Pradesh has started developing external infrastructure for this park, with plans for a 4.5-kilometer 45m wide road connecting the bulk drug park to NH-16. The necessary land acquisition of 44.07 acres will be managed by local authorities, Patel informed Parliament at the end of July this year.
By prioritizing the creation of bulk drug parks, the scheme aims to provide convenient access to top-notch common infrastructure facilities for bulk drug units within these parks, ultimately reducing production costs and bolstering India’s self-reliance and competitiveness in the bulk drugs sector.