Land allotment for proposed pharma cluster in MP: Proposal

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Medicine Factory
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Last Updated on December 18, 2020 by The Health Master

The Madhya Pradesh Small Scale Drug Manufacturers Association (MPSDMA) will soon submit a proposal to the state Industrial Development Corporation for allotment of land parcel on Indore-Ujjain Road measuring at least 90 acres for upcoming pharmaceutical cluster.

The decision to this effect was taken by MPSDMA at a meeting which was attended by association’s office-bearers including president Himanshu Shah, secretary Amit Chawla as well as state MSME minister Om Prakash Saklecha and Shankar Lalwani, Lok Sabha MP from Indore.

The cluster will have pharmaceutical as well as allied industries. Around 25-50 pharma units including 5-10 micro units, 10-20 small units, 10-20 medium units are expected to come up in the cluster with an approximate investment of Rs. 215 crore. The proposed cluster is expected to generate a business turnover of Rs. 375 crore.

Throwing light on the forthcoming pharma cluster, MPSDMA secretary Amit Chawla said, “The vision of pharma cluster is to catalyse and encourage quality, productivity and innovation in pharmaceutical sector in Madhya Pradesh and to enable pharma industry in the state to play a leading role in a competitive market.”


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“We requested MSME minister Om Prakash Saklecha & Lok Sabha MP from Indore Shankar Lalwani to set up a new pharma cluster on Indore-Ujjain road. Currently, MSME pharma companies in the region need additional land for their expansion. The pharma cluster will help them expand. The industry will get skilled man power from pharmacy colleges located in the region and pharmacy students will get jobs nearby areas. The cluster will also have allied industries,” he informed.

Besides this, a common effluent treatment plant will also be installed in the cluster to help industry meet requirement of standards of environment. Infrastructure facilities will be strengthened in the cluster which will reduce the production cost of drug units by 20 per cent. This will in turn make drugs more accessible and affordable in the domestic market and make the Indian pharma industry a global leader in drug exports, said Chawla.

After the provisional sanction for the required cluster by the state government, we would take an initiative to form special purpose vehicle (SPV) to submit the detailed project report for the cluster to department of pharmaceuticals (DoP), Union ministry of chemicals & fertilizers, he stated.

The DoP has introduced Cluster Development Programme for Pharma Sector (CDP-PS) to enhance quality, productivity and innovative capabilities of SME pharma units.

Apart from the pharma cluster, MPSDMA has also requested the creation of a common facility centre (CFC) at Sanwer road industrial area. The CFC will have a common testing facility, training centre, formulation & development centre, common logistics centre, exhibition hall etc. Currently, the land allotment for the CFC is underway. This will increase competitiveness, easy access to standard testing facilities and value addition in the SMEs, he said.

“Indore is a hub of MSME pharma if we want them to remain relevant to pharma business, CFC will be helpful,” he added.

MP Shankar Lalwani who is also member of the Small Scale Industries Board (SSI Board) has shown a keen interest in taking both the proposals forward. The SSI Board is the apex advisory body constituted to render advise to the government on all issues pertaining to the small scale sector.


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