3 Bulk pharma drugs hubs coming up Nationwide: Minister in reply to Arora

Ludhiana, February 15, 2024: Minister of State for Chemicals and Fertilizers Bhagwanth Khuba has answered to MP (Rajya Sabha) from Ludhiana Sanjeev Arora’s questions on `Bulk pharma drugs hub’ in the recently concluded interim budget session of Rajya Sabha.

Arora had asked about the policy for building bulk pharma drugs hub in the country; the details of such hubs set up in the country, State-UT/wise; and whether government is planning to setup such a hub in the State of Punjab, if so, the details thereof. 

In a statement here today, Arora said the Minister mentioned in his reply that the proposals from 13 States, including Government of Punjab were received for the setting up of Bulk Drug Parks. After evaluation, final approval was accorded to the proposals of Andhra Pradesh, Gujarat and Himachal Pradesh. 

The Minister further mentioned in his reply that the Scheme for promotion of Bulk Drug Parks was approved by the Cabinet on March 20, 2020. The objective of the scheme is to facilitate setting up of three Bulk Drug Parks in the country thereby bring down the cost of manufacturing of bulk drugs by creation of world class common infrastructure facilities. 

Further, the Minister mentioned in his answer that the financial assistance by the Centre is subject to a maximum limit of Rs.1000 Crore per park or 70% of the project cost of CIF (90% in case of North Eastern States and Hilly States (Himachal Pradesh, Uttarakhand, UT of Jammu & Kashmir and UT of Ladakh), whichever is less. The total financial outlay of the scheme is Rs 3000 crore and the tenure of the Scheme is from 2020-21 to 2024-25.

Arora said the Minister also mentioned in his answer that under the scheme, grant-in-aid for creation of identified Common Infrastructure Facilities is released to a State Implementing Agency (SIA) set up by the State Government for implementing the Bulk Drug Park Project. State Implementing Agency (SIA) has to be a legal entity (with minimum 51% equity shareholding of State Government in the paid-up capital of SIA) set up by the State Government for the purpose of implementing the Bulk Drug Park Project and responsible for the day-to-day management of the Bulk Drug Park.

The Minister further mentioned in his reply that the proposal from the Government of Punjab under the scheme ‘Promotion of Bulk Drug Parks’ for setting up the Bulk Drug Park at Bathinda was received. However, Government of Punjab vide letter dated October 7, 2022 withdrew the proposal for setting up of Bulk Drug Park at Bathinda.