The State Government has asked the Central Government to liberally extend financial assistance to the pharma city, a mega pharmaceutical cluster, coming up on the city outskirts.
The pharma city was one-of-its-kind integrated pharma cluster and the Centre had already recognised it as project of national importance. The master plan for the proposed project was prepared and it envisaged strengthening the pharmaceutical sector on the lines of Make In India model, said Industries Minister K.T. Rama Rao.
In separate letters addressed to Union Ministers Piyush Goyal (Industries and Commerce) and Dharmendra Pradhan (Petroleum and Natural Gas), Mr. Rama Rao sought financial assistance to the tune of ₹ 1,318 crore for basic infrastructure and an additional ₹ 2,100 crore for technological infrastructure besides firm allocation of gas to the upcoming project. The Centre should ensure that necessary infrastructure and facilities were created at the pharma city project, which was part of the National Investment and Manufacturing Zone, which had been given in-principle approval.
The financial assistance for infrastructure development should be provided as grant while the allocation of gas should be on preferential tariff basis. The project had received positive response from international companies from which investment was sought and it would become a focal point in continuing the country’s position as leader in the pharma sector.
In the letter addressed to Mr. Goyal, the Minister said the pharma city project was being designed in line with zero liquid discharge norms. It would comprise an international pharmaceutical university, logistics park, pharma training and testing laboratories as well as common drug development centre as its components.
The State Government had completed preparation of the master plan for 19,333 acres and detailed designs in respect of 8,400 acres had been developed. The project received environmental clearances from the Union Ministry and the State Government had commenced works on the project through a special purpose vehicle constituted for the purpose.
The project was expected to receive investment to the tune of ₹ 64,000 crore on its completion and had been planned in such a manner that it would provide direct and indirect employment to 5.6 lakh people. The Centre should extend grant-in-aid of ₹ 1,318 crore for infrastructure development and ₹ 2,100 as 50 per cent share for facilities like common effluent treatment plant, internal infrastructure and other technological infrastructure.
In the letter addressed to Mr. Dharmendra Pradhan, he recalled that a majority of pharma companies were relying on coal for their energy demands and it was proposed to utilise natural gas as fuel for the units in the upcoming pharma city project being developed under the green industrial concept. Since the proposed model would involve more expenses, the Centre should allocate 3.4 MMSCMD (million metric standard cubic metres per day) gas on preferential tariff basis.
