Center approves 1000 crore grant for Bulk Drug Park in Andhra Pradesh

Under the ‘Promotion of Bulk Drug Parks’ scheme of the Ministry of Pharmaceuticals, the Central Government has given Andhra Pradesh preliminary approval to creating a Bulk Drug Park (BDP), with a grant-in-aid of Rs. 1,000 crores.

In order to expedite the project, the Andhra government was notified by the Joint Secretary of the Union Department of Pharmaceuticals, N Yuvaraj, on Tuesday, August 30. He requested that the government provide its consent within seven days and submit a Detailed Project Report (DPR) within 90 days.

Andhra Pradesh is the only state in South India to receive this grant-in-aid from the centre for the BDP, among its contenders, Telangana, Karnataka and Tamil Nadu. The grant will be utilised to set up a common infrastructure facility at the BDP at the proposed location, Kodhada Village, Thondangi Mandal, in the East Godavari District.

The establishment of the Bulk Drug Park in the East Godavari area of Andhra Pradesh with a Rs 6,940 crore investment and the creation of the AP Bulk Drug Infrastructure Corporation were both authorised by the state cabinet in August 2020. The BDP will cover 2,000 acres, requiring the state government to work with commercial or private partners.

According to the officials, three such parks will be set up across the country with an aim to simmer down the manufacturing cost of bulk drugs through a common facility with top-class infrastructure. Among the 13 states that competed for this scheme being implemented by the Ministry of Pharmaceuticals, Gujarat, Himachal Pradesh and Andhra Pradesh emerged successful.

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