Last Updated on December 31, 2023 by The Health Master
The four medical devices parks approved under the Central sector scheme for promotion of medical devices parks are expected to result in development of a total of around 1,326 acres of area attracting a proposed investment of around Rs. 1,221 crore.
Out of this, the ministry of chemicals and fertilisers will provide a maximum grant-in-aid or Rs. 400 crore (Rs. 100 crore each) for the four projects while the rest has to be borne by the state governments.
According to the DoP, the Medical Devices Park in Madhya Pradesh is expected to come up in Pitampura-Dhar-Mhow region, in an area of 360.06 acres (as proposed by the State), with a total project cost of Rs. 222.77 crore.
The common infrastructure facilities (CIF) cost to be covered under the Park scheme is around Rs. 155.63 crore, while the physical infrastructure cost to be borne by the State is Rs. 34.47 crore.
The total amount to be borne by the State, as contribution towards the CIF and physical infrastructure is Rs. 122.77 crore.
In Tamil Nadu, the proposed park is expected to come up in an area of 350 acre in Oragadam Industrial Corridor, Vaipur & Mathur villages, Kancheepuram district near Chennai, with a total project cost of Rs. 212.40 crore.
The CIF cost would be Rs. 153.33 crore and the physical infrastructure cost to be borne by the state is Rs. 59.07 crore. The total amount to be borne by the State for the project would be around Rs. 112.40 crore.
The Himachal Pradesh government would be spending around Rs. 249.83 crore out of the total project cost of Rs. 349.83 crore for the proposed medical devices park coming up in an area of 265.75 acres in Baddi Barotiwala Nayagarh (BBN Area), Tehsil Nalagarh, Solan district.
The CIF cost to be covered under the scheme would be Rs. 157.64 crore, and the physical infrastructure cost Rs. 192.19 crore.
In Uttar Pradesh, the 350 acre park will be coming up in Sector 28 of YEIDA Phase I, Gautam Buddh Nagar district, with a total project cost of Rs. 435.94 crore.
The CIF cost to be covered under the scheme would be Rs. 214.17 crore, while the physical infrastructure cost is fixed at Rs. 221.77 crore. The State has to bear an amount of Rs. 335.94 crore as contribution for CIF and physical infrastructure.
The objective of the scheme is to promote 4 Medical Device Parks by providing Grant-in-Aid for creation of CIF. Duration of the Scheme is 2020-21 to 2024-25. Financial assistance is Rs. 100 crore per Park or 70% of the cost of the CIF, whichever is less.
The assistance would be 90% for NER and Hill States. The department has provisioned Rs. 120 crore in the budget estimate for the year 2022-23, which will be utilised to provide the second grant to these four states.
However, a Department Related Parliamentary Standing Committee on Chemicals and Fertilisers, in March, questioned the DoP for spending only Rs. 8.62 crore out of an allocated amount of Rs. 137.02 crore at the revised estimate stage of 2021-22. During 2020-21, out of Revised Estimate allocation of Rs. 21.05 crore, only Rs. 7.49 crore was spent.
The DoP said that out of Rs, 137.02 crore provisioned for the scheme in the revised estimates for 2021-22, Rs. 7.50 crore was released as second installment to Andhra Pradesh Medtech Zone Ltd (AMTZ), Rs. 1.12 crore has been released to IFCI Ltd, the project management agency of the Scheme as fee and the first instalment of Rs. 12 crore and Rs. 30 crore has been released to States of Uttar Pradesh and Tamil Nadu respectively.
Remaining amount shall be released to AMTZ as third instalment (Rs. 7.5 crore), IFCI Ltd as service fee, first instalment of Rs. 30 crore each to the States of Himachal Pradesh and Madhya Pradesh. Also, part of the first instalment of Rs. 18 crore shall be released to the State of Uttar Pradesh, it informed the Committee last fiscal year.
Raising concern that the funds allocated for this Scheme during 2020-21 and 2021-22 were not fully utilised, the Parliamentarians directed the DoP that the details of actual expenditure incurred as on March 31, 2022 to be furnished to the Committee.
It also noted that Rs. 120 crore has been provisioned in BE 2022-23 which the Department will release as the second grant to four Medical Device Parks with proportionate contribution by the State Implementing Agencies.
“Medical Devices Sector being a sunrise sector of the Indian Economy, creation of state of the art Common Infrastructure Facilities (CIF) in Medical Devices Parks is need of the hour and their creation will attract private investment in Medical devices Industry.
The Committee, therefore, strongly recommend that the Department should take necessary steps for the early release of budgetary funds to four Medical Devices Parks being set up in Himachal Pradesh, Madhya Pradesh, Tamil Nadu and Uttar Pradesh and it should also be monitored by the Department whether the released funds are resourcefully utilised by the concerned states,” it concluded.
The Committee also sought the DoP to intimate the progress made in achieving the physical and financial targets set under the scheme.
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