Chinese companies keen on setting up facilities at Pharma City

Industries department Principal Secretary Arvind Kumar said that around 50 Chinese companies are likely to set up their manufacturing facilities at the Pharma City, which will be coming up at Mucharla near Hyderabad.

By Author   |   Published: 15th Dec 2016   9:43 pm Updated: 15th Dec 2016   10:30 pm
Pharma City
Graphics by: Guru Sri

Hyderabad: About 50 bulk drug companies from China and other countries have evinced interest in setting up their facilities in the upcoming Pharma City at Mucharla near Hyderabad.

“There could be about 50 Chinese companies that are likely to set up their manufacturing facilities at the Pharma City. There is also interest from many countries,” said Arvind Kumar, Principal Secretary, Industries Department.

Creating physical infrastructure, including roads, would be the responsibility of the government through the Telangana State Industrial Infrastructure Corporation, the nodal agency for land allotments to companies.

A high level delegation has already toured the US and other markets to study the effluent treatment practices.

Indian exports pharmaceutical products to 220 countries. According to Pharmexcil data, they are valued at $16.89 billion (about Rs 1.14 lakh crore) in 2015. The exports are expected to more than double to over $35 billion (Rs 2.31 lakh crore) by 2020. Telangana, which has about 400 companies, accounts for a third of the bulk drugs exports.

“The Pharma City will be a zero discharge facility with modern effluent treatment plant and other facilities. The cluster will be under the supervision of the government,” said Kumar.

A vaccine testing facility, an animal quarantine centre, vivarium, a pharma university, an incubation centre and a township are also proposed here in addition to utilities and services. These will be taken up in phases.

About 6,800 acres will be taken up in the first phase. Works are on to provide water and power facilities. There will also be a dedicated road connecting the Pharma City. The water requirement is about 100 million litre per day. Land required for setting substation and other power infrastructure has been given for Telangana State Southern Power Distribution Company Limited.

“There is a confirmed demand for about 4,000 acre from small, medium and big companies at the Pharma City,” the official said.

When conceptualised in 2014 December, it was said the project could attract investments of about Rs 30,000 crore in phases and result in direct and indirect employment for 70,000 people.

The Telangana government on October 6 had issued an order for setting up of the ‘Pharma City’ in 12,500 acres of land in Rangareddy and Mahbubnagar districts.

The GO said the Telangana State Industrial Infrastructure Corporation (TSIIC) would send detailed project proposal (DPR) on the modalities for implementation and execution of project apart from carrying out the development works.

“As Telangana has traditionally been the bulk drugs capital with almost one-third of the total production in value terms, the State Government would aid in setting up of the facilities,” it added saying the city would be a one-stop shop for pharmaceutical manufacturing and biotech companies along with all related activities.

Efforts will also be made to establish Research & Development incubation centre, central testing facilities facilitating clinical trials, testing and certification, contract research and custom synthesis, the order further said.

Faced with shortage of space to expand in Hyderabad, a pharma city was privately developed near Visakhapatnam in the undivided Andhra Pradesh.

“The government wants the drug companies to increase their productivity. But the companies cite restrictions by the Pollution Control Board to expand at the existing facilities in and around Hyderabad,” said a bulk drugs manufacturer.

Though some companies have upgraded their effluent treatment systems, they are not allowed to increase the production or add new products,” he says.

“The Pharma City is a big boost to the industry but is at least five years away from being ready with the required set up. There will be a lot of procedures to be followed,” said B Narayan Reddy, chairman and founder, Virchow, which is into bulk drugs.