Haryana’s Pharma Park, which was recently announced by the state Government to boost the pharmaceutical industry, is ready to be infused with a massive investment of ₹2,000 Crore.
The said pharmaceutical park would be set up in Karnal, Haryana, and is aimed at generating opportunities for over 25,000 skilled professionals and boosting entrepreneurship in the state. The Government is aiming to build a pharma industry that would not only be serving the domestic market, but also have buyers overseas.
R.L. Sharma, the chairman of Karnal Pharma Park Ltd. (KPPL), confirmed that the proceedings are on, and this move will be a step towards making India a competitive pharmaceutical provider for the world.
This special purpose vehicle or SPV for Karnal was designed while keeping in mind the impending scheme that has been long been in works by the Khattar Government in Haryana. Over a 100-acre land is to be allotted to this ambitious project that will be located alongside State Highway 1.
The site is located close to 125 kilometers from the nation’s capital, and about 135 kilometers from the Union Territory of Chandigarh.
The Kerala Private Pharmacists Association (KPPA) will be responsible for purchasing the land and distributing it to the respective investing parties. The project would be completely executed by the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) and the state’s nodal body.
“The state government has sanctioned a budget of Rs 50 crore which will be transferred to the HSIIDC for the development of the pharma park,” said R.L. Sharma, who also serves as the President of the Karnal Pharmaceutical Manufacturers Association (KPMA).
The benefits of this project would be enjoyed by the related members of the SPV, and as of this date over 45 manufacturing companies and marketers have joined forces.
Haryana’s Pharma Park to be completed soon
The project is slated for completion by 2021-2022. Haryana Government is pulling out all stops to ensure that the pharma park would be developed and ready at the stipulated time.
Khattar Government has chosen the perfect place to govern their pharma operations since the location again acts as a value-added factor for investors, employees and everyone in between. The location between two prominent cities is a plus point, and the transportation facilities are quite optimum, according to R.L. Sharma.
Therawin Formulations sees this as a welcome development for the Pharma industry of our state.
Haryana Pharmaceutical Policy 2019
In another decision, the Cabinet also approved the Haryana Pharmaceutical Policy 2019 to regulate the establishment of this state-of-the-art Pharma Park at Karnal and to change Haryana into a hub for pharmaceutical manufacturing.
“The objective of the policy is to implement an enabling regulatory environment for pharmaceutical sector, with investor friendly and time-bound clearance delivery system, focus on holistic pharmaceutical cluster development, provide fiscal and non-fiscal benefits to units setting up in the Pharma Park, in a dedicated and streamlined manner.
Besides, the objective of the policy is to develop quality industrial infrastructure to support entrepreneurs in the State, provide land at subsidized rates to entrepreneurs for establishing pharma units and effectively utilize the Single Window clearance mechanism, providing clearances in a time-bound manner,” said the official release.
Common Facility Centre
Besides, Haryana’s Pharma Park, the State Government has also set up a laboratory that would act as the Common Facility Centre to provide for investors and other entrepreneurs.
The most important part of this benefit is the cluster scheme that is introduced by the Government so that the investors would receive added benefits with respect to the state’s Enterprises Promotion Policy, which was introduced back in 2015.
Plus, all of the fresh units that would be arriving in the pharmaceutical park will receive handsome benefits and incentives. The State Government would be paying up 25% of the price with respect to plant setting and machinery installation, provided the amount is over 50 lakh INR.
Companies will also receive an interest subsidy of about 5% every year for five years in the form of compensation for the paid interest, if a loan has been taken to meet the vital working capital conditions which would be subject to the 25 lakh INR per unit annual ceiling.
Mega Pharma Parks in Karnal
The KPMA has also sanctioned an agreement with respect to creating pharma parks. Three pieces of land have been identified for setting up the pharma units at Bastara, Taraori, and Kachwa. Once the land acquisition has been finalized, the Industry Department would be granting approvals to the Manufacturers Association.
The Government would also be setting up an additional Common Effluent Treatment Plant (CETP) for supporting the parks, but the overall costs will have to be taken up by the individual units themselves.
They are also putting stress on API Manufacturing and medical equipment manufacturing to bolster the production of medicine, create more jobs and decrease overall costs.