Last Updated on September 8, 2023 by The Health Master
Medical Device Park
This ambitious project, supported by a substantial financial grant-in-aid of Rs. 250 crore from the central government, is poised to become operational by the end of 2024.
In this article, we delve into the details of this innovative initiative, its economic potential, and the broader context of India’s efforts to bolster domestic medical device manufacturing.
Driving Economic Growth in Rajkot District
Situated in the heart of Rajkot district, the medical device park is a visionary endeavor designed to be both commercially viable and economically lucrative.
With an estimated investment of 100–150 million USD over the next three years, this initiative is expected to attract a significant capital infusion into the region.
The park aims to accommodate approximately 400 medical device companies, fostering an environment conducive to research and development, testing, manufacturing, training, and incubation within the medtech sector.
Government Support for Smooth Operation
Leveraging Nagalpar’s reputation as an engineering hub, this strategic location is anticipated to deliver impressive returns on investment (RoI).
Dr. H.G. Koshia, Commissioner of the Gujarat Food and Drug Control Administration (FDCA), remarked, “Nagalpar is an engineering hub, and setting up a medical device park here will bring in a good Return on investment (RoI).
It is expected to facilitate research and development, testing, manufacturing, training, and incubation in the medtech space for medical device companies.”
Promoting Medical Device Manufacturing
The Gujarat Industrial Development Corporation (GIDC) has taken the initiative to establish this medical device park in Nagalpar, Rajkot, with the primary objective of promoting medical device manufacturing within the state.
This move aligns with the broader efforts of the Government of India to reduce import dependence by encouraging domestic manufacturing of drugs, including bulk drugs and medical devices.
National Initiatives to Boost Medical Device Manufacturing
Under the “Promotion of Medical Device Parks” scheme, the Government of India has granted final approval for financial assistance of Rs. 100 crore each to the states of Uttar Pradesh, Tamil Nadu, Madhya Pradesh, and Himachal Pradesh for the establishment of common facilities in their respective Medical Device Parks.
Additionally, the sub-scheme “Assistance to Medical Device Industry for Common Facility Center” allocated a grant-in-aid of Rs. 25 crore to Andhra Pradesh Medtech Zone Ltd., (AMTZ) for the establishment of a Common Facility for Superconducting Magnetic Coil Testing and Research Facility.
Financial Incentives for Domestic Manufacturing
To further incentivize domestic manufacturing of medical devices, the government introduced the production-linked incentive (PLI) scheme.
With a substantial financial outlay of Rs. 3,420 crore and a tenure from FY 2020–21 to FY 2027–28, this scheme offers financial incentives to selected companies.
These incentives, equivalent to 5 percent of incremental sales of medical devices manufactured in India, apply to four target segments of the scheme over a period of five years.
In conclusion, Gujarat’s medical device park in Nagalpar represents a significant leap forward for the medtech industry in India.
With strong government support, a strategic location, and national initiatives to promote medical device manufacturing, this project is poised to revolutionize the sector and contribute significantly to the country’s healthcare ecosystem while offering an attractive investment opportunity for companies in the field.
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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