The scheme for promotion of Bulk Drug Parks was approved by the Cabinet on 20.03.2020 to facilitate setting up of three (3) Bulk Drug Parks in the country with the objective to bring down the cost of manufacturing of bulk drugs by creation of world class common infrastructure facilities. It would also help in creation of economies of scale for production of bulk drugs.

The financial assistance by the Central Govt. is subject to a maximum limit of ₹1000 crore per park or 70% of the project cost of Common Infrastructure Facilities (CIF) (90% in case of North-eastern States and Hilly States i.e. Himachal Pradesh, Uttarakhand, UT of Jammu & Kashmir and UT of Ladakh), whichever is less. The fund allocated for the scheme is ₹3000 crores. The tenure of the scheme is from FY 2020-2021 to FY 2026-2027.

Under the scheme, financial assistance from the Central Govt. is being provided for creation of Common Infrastructure Facilities (CIF) viz.-

1. 1. Central Effluent Treatment Plant(s) (CETP)
   2. Solid waste management
   3. Storm water drains network
   4. Common Solvent Storage System, Solvent recovery and distillation plant
   5. Common Warehouse
   6. Dedicated power sub-station and distribution system with the necessary transformers at factory gate
   7. Raw, Potable and Demineralized Water
   8. Steam generation and distribution system
   9. Common cooling system and distribution network
   10. Common logistics
   11. Advanced laboratory testing Centre, suitable for even complex testing/ research needs of APIs (Active Pharmaceutical Ingredients), including microbiology laboratory and stability chambers
   12. Emergency Response Centre
   13. Safety/ Hazardous operations audits centre and
   14. Centre of Excellence etc.

Under the scheme for Promotion of Bulk Drug Parks, the Department had received proposals from 13 states. After evaluation, proposals of Gujarat, Himachal Pradesh and Andhra Pradesh for setting up of Bulk Drug Parks were approved with a grant-in-aid of ₹1000 crore to each park. Brief details of these parks are mentioned below:

Approved States	Location	Area (in acre)	State Implementing Agency (SIA)	Total Project Cost (₹ in Crore)	CIF Cost (₹ in Crore)
Gujarat	Jambusar, Bharuch	2015.02	Gujarat Industrial Development Corporation (GIDC)	2507.02	1457.01
Himachal Pradesh	Haroli, Una	1405.01	Himachal Pradesh Bulk Drug Park Infrastructure Ltd. (HPBDPIL)	1923	1118.46
Andhra Pradesh	Nakkapalli, Anakapalli	2001.80	Andhra Pradesh Bulk Drug Infrastructure Corporation (APBDICL)	1876.66	1438.89

The current stage of development of these parks is as under: -

(i)    Gujarat Bulk Drug Park: All Common Infrastructure Facilities (CIFs) related civil infrastructure tenders for roads, drainage, water infrastructure, effluent collection, and rack systems have been awarded and the works are at an advanced stage of completion. Utility-related tenders for the Common Effluent Treatment Plant (CETP), solvent recovery, and Treatment Storage & Disposal Facilities (TSDF) have also been awarded and execution is underway.

(ii)   Andhra Pradesh Bulk Drug Park: Infrastructure tenders for internal roads, power, water, drainage, and utility buildings have been awarded and work is progressing. Fencing along the project boundary has been completed, the external water pipeline is under installation, and approval of the power infrastructure design is under process. Land acquisition for additional land is underway, and environmental clearance for the said land was granted in January 2026.

(iii)  Himachal Pradesh Bulk Drug Park: Tenders for internal roads, drainage, bridges, and water infrastructure have been awarded and works are in progress. The tender for zero liquid discharge facilities, including CETP and steam generation and distribution systems, has been floated. Site demarcation, grading, and land levelling works are also in progress.

At present, there is no such proposal of the Government of India to establish a Bulk Drug Park in the State of Tamil Nadu under the Scheme for Promotion of Bulk Drug Parks.

While no Bulk Drug Park has been approved for Tamil Nadu under the said scheme, the Government is promoting infrastructure development and investment in the pharmaceutical sector across the country, including Tamil Nadu, through other initiatives such as Scheme for Promotion of Medical Devices Parks and Production Linked Incentive (PLI) Scheme. The details of these schemes are as under:

(i)    Scheme for Promotion of Medical Devices Parks: The Scheme for Promotion of Medical Devices Parks aims to provide easy access to world-class, common infrastructure facilities to medical device units set up in medical device parks. Under this scheme, three parks are being set up and are at an advanced stage of development in Greater Noida, Uttar Pradesh, Ujjain, Madhya Pradesh and Kanchipuram, Tamil Nadu. The total project cost of these Parks is ₹871.11 crore, with Central grant-in-aid to the tune of ₹100 crore each for creation of common infrastructure facilities, which is expected to enhance industry’s competitiveness and reduce production costs through optimisation of resources and economies of scale. Civil construction for the three parks is at the final stages. As of December 2025, 199 medical devices manufacturers have been allotted land in the three parks in a 306.64 acre area and 34 units have commenced construction of their plants.

(ii)   Production Linked Incentive (PLI) Scheme:

1.  PLI Scheme for promotion of domestic manufacturing of critical KSMs/DIs/APIs in India (commonly known as the PLI Scheme for Bulk Drugs): The scheme, which has a total budgetary outlay of ₹6,940 crore, aims to avoid disruption in supply of critical active pharmaceutical ingredients (APIs) used to make critical drugs for which there are no alternatives by reducing supply disruption risk due to excessive dependence on single source. The scheme provides financial incentives on the sale of 41 identified KSMs/ DIs/ APIs products manufactured through greenfield projects set up under the scheme. Under the scheme, 48 projects are approved for manufacturing of 33 bulk drugs, out of which 2 projects are approved from the State of Tamil Nadu.

2. PLI Scheme for Pharmaceuticals: The scheme, which has a total budgetary outlay of ₹15,000 crore, aims to enhance India’s manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high-value goods in the pharmaceutical sector. It incentivises production of high-value medicines such as biopharmaceuticals, complex generic drugs, patented drugs or drugs nearing patent expiry, auto-immune drugs, anti-cancer drugs, etc. as well as production of KSMs/ DIs/ APIs other than those notified under the PLI Scheme for Bulk Drugs, thereby contributing to self-reliance. Under the scheme, 55 applicants are approved for manufacturing of pharmaceuticals and in-vitro medical devices (IVDs) manufactured through both greenfield and brownfield projects. 16 manufacturing units are situated in the State of Tamil Nadu.

3. Production Linked Incentive (PLI) scheme for promoting domestic manufacturing of Medical Devices: The scheme has a budgetary outlay of ₹3,420 crore and a five-year performance-linked incentive period from FY2022-23 to FY2026-27. Under the scheme, selected companies are eligible for financial incentive for incremental sales of domestically manufactured medical devices in the radiotherapy, imaging device, anaesthesia, cardio-respiratory and critical care and implant device segments, for a period of five years. Under the scheme, out of total 28 approved projects two have been approved in Tamil Nadu.

This information was given by the Union Minister for Chemicals and Fertilizers, Shri Jagat Prakash Nadda in a written reply in the Lok Sabha today.

 

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