Expectations run high among bulk drug manufacturers in and around Hyderabad about the Pharma City project.
If they perceive it as a way out of the growing opposition to their presence in the city, it is not without reasons. Bulk Drug Manufacturers Association (India) sees in the facility an opportunity to make a fresh beginning, at a location not far away from Hyderabad, planned, developed and offering facilities to spur growth and reduce costs.
For the existing units, moving out of Hyderabad is expected to be gradual. BDMA general secretary R.K. Agrawal says USFDA approved units need time to shift as the certification is time bound and not easy to obtain. Expansion projects, however, can be taken to Pharma City.
The association counts among the benefits of facility the proximity to Hyderabad (about 50 km away); relatively less investment and lower manpower requirement given the level of central facilities; captive power plant; and bulk chemical storage to reduce need for higher inventories.
In a presentation to the government, BDMA suggested 5,000 of the 11,000 acres to be allotted for industrial plots; 300 acres for the Pharma Knowledge Park comprising R&D labs, pilot plants and clinical studies centre; 200 acres for pharma university; 650 acres for non processing areas, including power plant; 600 acres for township; and 500 acres for CETP and hazardous management facilities.
It has sought incentives by way of waiver of stamp duty, registration charges and some other levies besides land at reasonable price. It wants pharma industry to be declared as an essential service to exempt it from power cuts and labour strikes.
