Telangana

State seeks ₹6,000 cr. grant from Centre for Pharma City

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Project envisages direct, indirect employment to 5.6 lakh persons

The State government has proposed a ₹6,000 crore grant from the Centre for the Hyderabad Pharma City at Mucherla, now that the Department of Industrial Promotion (DIP) of the Ministry of Industries has given its final approval for the project as National Investment and Manufacturing Zone.

The project cost is estimated at ₹16,395 crore, of which the government had requested the DIP to give a grant of ₹ 6,000 crore for creation of internal and external basic infrastructure and other technical work. The Centre had agreed to release ₹ 1,500 crore in the first instalment but there was no headway. Hence, the Industries Minister K.T. Rama Rao had on October 19 again sent proposals to the Centre to sanction ₹3,418 crore in the first instalment, including ₹1,318 crore for laying of roads, water supply and external facilities. Another ₹2,100 crore was proposed for internal facilities, sources said.

The DIP had given in-principle approval to the project on January 22, 2016, though it was conceived in 2015. Thereafter, the government submitted the techno-economic feasibility report and the detailed project report which the DIP studied in detail and gave final approval on December 10.

The project envisages direct and indirect employment to 5.6 lakh persons with an investment of ₹ 64,000 crore. The Telangana State Industrial and Infrastructure Corporation set up a Special Purpose Vehicle (SPV) Hyderabad Pharma City Limited to expedite development of basic infrastructure. For funding internal infrastructure development, the government sent proposals to Asia Infrastructure Investment Bank.

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Printable version | Jan 28, 2020 9:59:55 PM | https://www.thehindu.com/news/national/telangana/state-seeks-6000-cr-grant-from-centre-for-pharma-city/article30480296.ece

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