Gujarat govt announces incentives for Jambusar bulk drug park to cut import dependence

Gandhinagar, Oct 29 (IANS) The Gujarat government has approved a special incentive scheme for pharmaceutical manufacturers setting up units at the proposed bulk drug park in Jambusar of Bharuch district, offering a 10 per cent capital subsidy, reimbursement of utility charges for up to 10 years and full reimbursement of stamp duty and registration fees on the first allotment of land.

The scheme aims to strengthen domestic pharmaceutical manufacturing and reduce India's dependence on imports of Active Pharmaceutical Ingredients (APIs), Key Starting Materials (KSMs) and drug intermediates, which are essential to the production of medicines.

The park is being developed across approximately 2,015 acres in Jambusar, in line with the Centre's initiative to establish bulk drug parks and strengthen domestic manufacturing capabilities.

The proposed facility will have a plug-and-play infrastructure ecosystem, including more than 10 common infrastructure facilities intended to reduce capital and operating costs for manufacturers.

These will include a Common Effluent Treatment Plant (CETP), a CSTP, a steam generation and distribution network, solvent recovery facilities, a Treatment, Storage and Disposal Facility (TSDF), deep-sea disposal infrastructure, a Centre of Excellence and a multimodal logistics network.

Under the incentive scheme, investors can choose between the dedicated Bulk Drug Park Scheme and the Viksit Gujarat Industrial Policy-2026, depending on their project requirements.

The dedicated scheme provides a 10 per cent capital subsidy on eligible fixed capital investment (eFCI), along with special interest subsidies for eligible micro, small and medium enterprises (MSMEs).

It also provides for reimbursement of utility charges for up to 10 years, covering expenses related to power, steam, water, effluent treatment, solid waste management, warehousing and park maintenance.

In addition, investors will be eligible for 100 per cent reimbursement of stamp duty and registration fees for the first-time allotment of land within the park.

The state government expects the project to attract investment in pharmaceutical manufacturing by utilising Gujarat's industrial base, coastal location and logistics connectivity.

It is also expected to generate employment opportunities for thousands of skilled and semi-skilled workers.

"The initiative is aligned with Prime Minister Narendra Modi's vision of 'Atmanirbhar Bharat' and 'Viksit Bharat @2047'," officials added.

By expanding domestic production of critical pharmaceutical ingredients and intermediates, the project is intended to strengthen India's position in the global pharmaceutical supply chain and reduce its reliance on overseas suppliers.

--IANS

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