Department Of Industries Submits Detailed Project Report For Approval Of Bulk Drug Park In Himachal Pradesh

Consequent upon the ‘In-Principle’ accorded by Department of Pharmaceuticals, GoI on August 30, 2022, the Department of Industries submitted Detailed Project Report (DPR) on October 03, 2022 to DoP, GoI for seeking the final approval for the upcoming Bulk Drug Park at Haroli, District Una, Himachal Pradesh.
Secretary, Department of Pharmaceuticals, Government of India, Ms. S. Aparna chaired the Scheme Steering Committee (SSC) Meeting for examining and considering the Bulk Drug Pharma DPR in Himachal Pradesh. The above said committee had representatives from Ministry of Environment, Forest and Climate Change (MoEFCC), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Health and Family Welfare, Government of India (MoH&FW), Director General Drug Controller of India (DCGI), and Industrial Finance Corporation of India (IFCI). After detailed discussions, the committee approved Detail Project Report (DPR) in the meeting.

Consequently, expressing his pleasure on the consent by Scheme Selection Committee for the Bulk Drug Park in Himachal Pradesh, Sh. Jai Ram Thakur, Chief Minister commented, “Final approval of this project of National Importance will herald 2nd Industrial revolution in the State, especially in the Pharmaceutical sector”. He also added that this project is the positive effect of ‘Double Engine Government’ (of Centre and State), that works in unison and strengthened the Spirit of Competitive and Cooperative Federalism. Also Shri Bikram Singh Thakur Hon’ble Industries Minister stated that industry department has played very important roal in accleratring the industrial development in the state during this regime under the dynamic leadership of Shri Jai Ram Thakur. This Mega project will set in motion numerous economic activities in its surrounding, which induces socio-economic activities such as allied industries, housing, housing, education and commercial. This all will translate into new opportunities for young entrepreneurs, improved standards of living for people in adjoining five districts Una, Bilaspur, Kangra, Solan and Hamirpur.

Shri Rakesh Prajapati, Director (Industries) made a detailed presentation of Bulk Drug Park DPR. In the meeting Sh Tilak Raj Sharma, Additional Director, Department of Industries, HPSIDC team member and EY consultants were also present. The key highlights of the presentation are as under:
a. Showcasing comparative advantage of the State in terms of EoDB, Power availability and affordability, availability of huge land bank, enabling ecosystem, an overview of industrialization & pharma sector in the State and investors friendly policy.
b. It was informed that this project would be implemented through Himachal Pradesh Bulk Drug Infrastructure Limited which would be State Implemting Agency (SIA) and informed that an escrow account has been opened under the name of Bulk Drug Park to receive Grant-in-aid from Govt of India.
c. A dedicated Single Window mechanism will be set up exclusively for the pharma companies to accord all the regulatory and non-regulatory approvals.
d. The total estimated cost of the Bulk Drug Park Project is Rs. 1,923 cr, out of which the eligible CIF for GoI grant is Rs. 1,118 cr and remaining amount Rs 804. 54 cr would be borne by the State Govt. The main CIF cmponents are Common Effluent Treatment Plant (CETP) with Zero Liquid Discharge (ZLD), Common Solvent Storage, Recovery & Distillation, Steam Generation and Distribution are some of the key components of Common Infrastructure Cost.
e. The estimated cost of utilities in 12 years including 2 years of construction period and 10 years of operation period, are Rs.5520.30 Cr. and and revenue from utiliteies is Rs.5259.68 Cr.
f. SIA will generate income through other sources such as application fee, Map approval fee, security deposit, extension fee, sale of commercial plot.
g. To ensure Ecological Balance and address the environmental related challenges, Director (Industries) apprised the committee that Zero Liquid Discharge (ZLD) facility with an estimated cost of Rs. 244. 43 cr. has been provisioned in the DPR on one hand and 10% area kept as Green area in the park.
h. Shri Rakesh Prajapati, Director (Industries) ensured to the committee that only genuine entrepreneurs would be encouraged and the department shall make a separate land allotment policy for bulk drug park.During the discussion, Director (Industries) clearly shared that State of Art Integrated Industrial Township spread over land measuring 175 acres at village Panjwana. This will be developed and made a livable township with the prime objective of increasing the propensity to consume/ consumption within the State through retaining all the employees/ worker via-a vis preventing migration from the State. Besides, it will also generate adequate income to the State Implementing Agency (SIA).

i. During the discussion, it was also highlighted that some of the key Pharma companies have shown interest to invest in Bulk Drug Park. Industries department will sign MoUs with the potential investors shortly.
j. For the development of Bulk Drug Park NIPER Mohali has been engaged as the Technical Partner.
k. It was also informed that 6 multifule boilers would be setup in the park to meet out steam demand of 300 Tonne per hour. And 36 Mega Watt (MW) power would be generating through steam turbines set. Out of this 36 MW, 30 MW would be sould out through open access & 6 MW whoild be for capitive use.
l. The Bulk Drug Park is expected to attract an investment of 8,000-10,000 Cr and would be able to generate employment of 15,000-20,000 persons. It will provide huge impetus to the socio-economic development of the region around this park.
The committee has appreciated the efforts of the State Govt for preparing the DPR & keeping in view the proposed sources of revenue to SIA and a;ong with the financial model, the committee found the proposal highly viable and sustainable in the long run and agreed to accord final approval.

Further, Shri Jai Ram Thakur Chief Minister Himachal Pardesh stated that department is commited to execute both Medical Device Park & Bulk Drug Park in time bound manner so that entire region could reap the benefits of these projects. He also mentioned that “This is indeed a moment of pride both for the State Government and people of the State.” and further added that Bulk Drug Park will not only ensure the retention of existing pharma formulation units in the state but also will a step towards making India self reliant in API sector”. He also appreciated the strupendous task accomplished by team of Industries department and E&Y consultants.