In order to explore investment opportunities in the growing Uttar Pradesh (UP) pharma industry, a high-level delegation of pharma associations like the Indian Drug Manufacturers Association (IDMA), the Indian Pharmaceutical Alliance (IP Alliance) and the Organisation of Pharmaceutical Producers of India (OPPI) met Chief Minister (CM) of Uttar Pradesh Yogi Adityanath.
UP CM recently inaugurated a global congregation of investors and entrepreneurs as part of 'Uttar Pradesh Pharma Conclave 1.0’ to boost pharma industry in the state of UP. Work is ongoing towards setting up Bulk Drug Pharma Park in Lalitpur and a Medical Device Park in the Yamuna Expressway region.
Dilip Shanghvi, managing director of Sun Pharmaceutical Industries, Pankaj Patel, chairman of Zydus Lifesciences Ltd, Satish Reddy, chairman of Dr Reddy's Laboratories and Jinal Mehta, director, Torrent Group among others were part of the delegation.
Sharing his views on the meeting, Dr. Viranchi Shah, national spokesperson of IDMA informed that UP today offers a very conducive policy to build a strong healthcare base which includes pharmaceuticals and medical devices. The objective of the delegation is to become partner of the state of UP in its healthcare and pharma growth journey. The Government of UP is working towards developing a complete end to end ecosystem of R&D and Manufacturing to boost pharma and medical devices industry. This has been made feasible with the state of UP today offering an ease of doing business (EoDB) environment through investor friendly policy incentives, good governance, connectivity of highways, airports, expressways along with electricity and a huge land bank among the major advantages.
UP today boasts of a land bank of 75,000 + acres and 11,825 GWh of electricity capacity.
He further added, “The state of UP with a big population has an untapped potential to cater to the local needs for medicines but also population from other neighbouring states and regions. If a manufacturer sets up a plant locally in any part of the value chain, it will give access to local markets and growth opportunities. These opportunities are being created in the form of a Bulk Drugs Pharma Park in Lalitpur and a Medical Device Park in the Yamuna Expressway region in the state of UP.”
UP is the only State to have 13 expressways with 7 operational and 6 upcoming expressways, highest number of airports with 5 international and 16 domestic airports, vast network of Rapid Transport Systems (RTS) including first Regional RTS (RRTS) of Delhi to Meerut. UP is the first to have multi modal waterways terminal on river Ganges at Varanasi and a metro rail network which is operational in 4 cities and planned in 9 cities.
“IDMA plans to partner with the pharma companies in UP towards skill building in all areas of pharmaceutical domain. This will help companies comply with regulations and build a strong workforce to create a resilient value chain for quality medicines in India and globally,” Dr. Shah concluded.
The Uttar Pradesh Pharmaceutical and Medical Devices Industry Policy, 2023 is aimed to promote Ayush healthcare, intellectual property (IP), setting up world-class infrastructure to attract top talent and build state-of-the-art pharma hub, R&D and innovation in pharmaceuticals and medical devices sectors.
It will also usher in manufacturing of formulations, active pharmaceutical ingredients (APIs), key starting materials (KSMs), drug intermediates (DIs), medical devices including in vitro diagnostics (IVDs) and cosmetics, establishment of modern pharmaceuticals and medical devices park.
UP is offering various incentive to private pharmaceutical and medical device parks like land purchase support of 50% interest subsidy for 7 years on land loans (up to Rs. one crore per year per park), infrastructure development of 60% interest subsidy for 7 years on infrastructure loans (up to Rs. 10 crore per year; maximum Rs. 50 crore per park and common facilities with 60% interest subsidy for 7 years on loans for common facilities (up to Rs. 5 crore per year; maximum Rs. 30 crore per park).
It is also offering stamp duty exemption, which is 100% for developers and 50% for first-time individual buyers, capital subsidy of 15% of investment for common infrastructure (cold storage, warehouses, testing facilities), capped at Rs. 25 crore, extended interest subsidy: interest subsidy applicable for 10 years for units in Bulk Drug Parks or Medical Device Parks and grant for setting up CETP: 40% of project cost to set up Common Effluent Treatment Plant (CETP)/ Waste Management System (WMS) up Rs. 10 crore.
UP is amongst the top 5 manufacturing states with the highest number of 1.9 million MSMEs in the country. It is the largest producer of generic medicines globally and has the second highest US FDA approved units. It is the third largest pharmaceuticals producer globally by volume and fourth largest medical device market in Asia. It is today offering a dedicated production linked incentive (PLI) scheme for pharma sector. With exports to 220 + countries, it has export value of 30 billion USD. UP today has 81,000+ wholesalers, 1,45,000+ retailers, 600+ manufacturers, 685+ blood centres and 450+ pharma colleges. |