The Union Cabinet on Wednesday approved the sub-leasing of 330.10 acres of land at Chengalpattu by HLL Lifecare Ltd, a mini-ratna, for setting up a medical devices manufacturing park (Medipark).
The land was originally leased to the firm by the Ministry of Health and Family Welfare. The Medipark, which will be India’s first medical technology manufacturing cluster, aims to produce low-cost diagnostic devices and ensure delivery of affordable healthcare. The move, which is in line with Prime Minister Narendra Modi’s Make in India initiative, is expected to generate direct employment for around 3,000 people once it is fully functional.
In 2015, the demand for medical equipment and devices – 70% of which were imported – was estimated at Rs. 30,000 crore. “India is currently almost completely dependent on imports for high-end items like imaging equipment, pace makers, and breathing and respiration equipment,” R. P. Khandelwal, Chairman and Managing Director, HLL, said in a statement. “This is placing a huge financial burden, especially on public healthcare delivery services. Domestic manufacturing of the devices and equipment would bring down the cost and make healthcare more affordable.”
The Medipark is expected to be completed over seven years. Physical infrastructure will be created in the first phase with plots expected to be leased out from the third year. HLL’s shareholding in the project would be more than 50 per cent, while the government of Tamil Nadu would have an equity participation of up to 10 per cent. “The land has been leased to HLL for 99 years at Re. 1 per annum; the assessed market value of the land will be paid back to the Government out of surplus generated from the 7th year onwards,” HLL said in a statement.
The project would attract investments worth Rs. 3,000 crore and development of infrastructure would cost Rs. 130 crore, said another official from HLL.
The firm will develop plug-and-play state-of-the-art infrastructure and industrial plots, and lease them out to investors for setting up manufacturing units.
Conceptualised as a one-stop facility, the project would create an integrated ecosystem and facilitate business, approvals, R&D, prototyping and commercialisation, the statement said.
