Bulk Drug Park set to boost Domestic Production: Gujarat

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Last Updated on September 2, 2023 by The Health Master

Bulk Drug Park

In a significant move towards enhancing India’s pharmaceutical self-sufficiency, the anticipated bulk drug park in Gujarat is primed to initiate operations in December 2024.

The Industries and Mines Department (IMD) of the Government of Gujarat, underlining its commitment to the project’s timeline, conveyed this information.

Dr. H G Koshia, Commissioner of the Gujarat Food and Drug Control Administration (FDCA), shared this exciting update.

Advancing Drug Security and Reducing Imports

The initiative aligns with the Central Government’s vision to establish bulk drug parks, fostering drug security and curbing the nation’s reliance on imports.

This imperative endeavor stems from the Department of Pharmaceuticals (DoP), which accorded ‘in-principle’ endorsement to the proposals for pharmaceutical parks in:

The approval, granted in December 2022, stems from a competitive evaluation of all states nationwide.

Setting the Stage: Gujarat’s Progressive Move

The Industries and Mines Department of the Government of Gujarat has allocated a substantial 2200 acres of land in Jambusar, Bharuch, for India’s pioneering bulk drug park.

Within the framework of this initiative, the Central government extends a significant financial grant-in-aid of Rs. 1,000 crore to develop shared infrastructure facilities within these bulk drug parks.

These encompass a common effluent treatment plant, a common solvent storage system, provisions for solid waste management, efficient stormwater drainage systems, and a center for safety and hazardous operations audits.

For this groundbreaking venture, the Gujarat Industrial Development Corporation (GIDC), wholly owned by the state government, assumes the mantle of the State Implementing Agency (SIA) in charge of the park’s development in Jambusar.

Investment in Bulk Drug Park

In addition to the Central government’s investment, the state government of Gujarat is poised to infuse Rs. 2,000 crore and more into the bulk drug park.

Underpinning this enterprise, the Gujarat administration will extend industry-friendly incentives encompassing stamp duty, electricity duty, and interest subsidies.

The selection of Jambusar as the park’s location positions it as a nucleus for approximately 300 industries, predominantly small and medium enterprises (SMEs).

The advent of this bulk drug park comes as a relief, considering the pharmaceutical sector’s challenges caused by soaring input costs over the past 18 months.

The DoP’s Scheme for Bulk Drug Park

The forthcoming bulk drug park in Gujarat adheres to the principles articulated in the “Promotion of Bulk Drug Parks” scheme by the Department of Pharmaceuticals (DoP), a part of the Union Ministry of Chemicals and Fertilizers.

This scheme’s essence is to catalyze domestic bulk drug production by promoting the manufacture of key starting materials (KSMs), drug intermediates, and active pharmaceutical ingredients (APIs).

Incentives for Progress: A Strategic Approach

To encourage substantial investments in the sector and counteract India’s dependence on imported APIs, the scheme proposes financial incentives linked to sales made by selected manufacturers for 41 products, spanning all 53 identified APIs.

The incentive structure encompasses two major product categories: fermentation-based and chemical synthesis-based products.

For fermentation-based products, the incentive breakdown stands as follows:

  • FY 2023-24 to FY 2026-27: 20%
  • FY 2027-28: 15%
  • FY 2028-29: 5%

For chemical synthesis-based products:

  • FY 2022-23 to FY 2027-28: 10%

Gujarat’s Pinnacle Role in Pharma

With a resounding share of approximately 28% in India’s pharmaceutical exports valued at US$ 25 billion, Gujarat stands as a robust contributor to the country’s pharmaceutical landscape.

Furthermore, Gujarat commands a substantial 30–31% share of the domestic market, which itself is valued at another US$25 billion.

As December 2024 approaches, the bulk drug park in Gujarat emerges as a beacon of hope for enhanced domestic pharmaceutical production, reduced import dependence, and amplified industry growth.

Disclaimer: This article contains information derived from the source mentioned below. Our team utilized an AI language model to rewrite and present the news or article in a unique format.

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