**Executive Summary**
The Department of Pharmaceuticals is implementing a scheme for Promotion of Bulk Drug Parks with a budgetary outlay of ₹3,000 crore, under which three bulk drug parks have been approved and are at various stages of development in the States of Andhra Pradesh, Gujarat and Himachal Pradesh. The total project cost of these parks is over ₹6,306.68 crore, with Central assistance to the tune of ₹1,000 crore each for creation of common infrastructure facilities. There is also a PLI Scheme for Pharmaceuticals with a total budgetary outlay of ₹15,000 crore, aiming to enhance India's manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high-value goods in the pharmaceutical sector. There is no proposal to establish a Bulk Drug Park in Tamil Nadu under the Scheme for Promotion of Bulk Drug Parks.
**Key Points / Main Content**
* **Scheme for Promotion of Bulk Drug Parks:**
* Three parks approved in Andhra Pradesh, Gujarat, and Himachal Pradesh.
* ₹3,000 crore budgetary outlay.
* ₹1,000 crore Central assistance per park for infrastructure.
* Parks will provide land, power, water, effluent treatment, waste management, and warehouses at subsidised rates.
* **Scheme for Promotion of Medical Devices Parks:**
* Aims to provide common infrastructure for medical device units.
* Three parks are at advanced stages in Greater Noida, Ujjain, and Kanchipuram.
* Total project cost is ₹871.11 crore, with ₹100 crore Central grant-in-aid each.
* Civil construction for the three parks is at the final stages.
* As of December 2025, 199 medical devices manufacturers have been allotted land in the three parks and 34 units have commenced construction of their plants.
* **Production Linked Incentive (PLI) Scheme for Bulk Drugs:**
* ₹6,940 crore budgetary outlay.
* Aims to reduce supply disruption of critical APIs.
* Provides financial incentives on sales of 41 identified KSMs/ DIs/ APIs.
* 48 projects are approved for manufacturing 33 bulk drugs, 2 from Tamil Nadu.
* **PLI Scheme for Pharmaceuticals:**
* ₹15,000 crore budgetary outlay.
* Aims to enhance manufacturing capabilities and product diversification.
* Incentivises production of high-value medicines.
* 55 applicants approved for pharmaceutical manufacturing, 16 in Tamil Nadu.
* **PLI Scheme for Medical Devices:**
* ₹3,420 crore budgetary outlay for FY2022-23 to FY2026-27.
* Provides incentives for incremental sales of domestically manufactured medical devices.
* 28 approved projects, 2 are from Tamil Nadu.
* **Promotion of Research and Innovation in Pharma-MedTech Sector (PRIP):**
* ₹5000 crore outlay with a scheme duration up to FY2029-30.
* Aims to strengthen research and innovation.
* Establishes seven Centres of Excellence (CoEs).
**Impact Analysis**
**State Implementing Agencies (Andhra Pradesh, Gujarat, Himachal Pradesh)**
**Impact**
Responsible for developing and managing Bulk Drug Parks.
**Action Required**
Continue developing the parks and offering fiscal incentives.
**Bulk Drug and API Manufacturers**
**Impact**
Can access subsidized land and utilities in Bulk Drug Parks.
**Action Required**
Apply for land allotment and set up manufacturing units.
**Medical Device Manufacturers**
**Impact**
Can access common infrastructure facilities in Medical Device Parks.
**Action Required**
Apply for land in the three parks for manufacturing plants.
**Pharmaceutical Companies (including those in Tamil Nadu)**
**Impact**
Eligible for incentives under the PLI Schemes.
**Action Required**
Apply for incentives for manufacturing critical drugs and medical devices.
**R&D Industries, MSMEs, start-ups (including those in Tamil Nadu)**
**Impact**
The Scheme would incentivize eligible R&D and innovation projects and promote such activities across States including the state of Tamil Nadu.
**Action Required**
Apply for financial assistance to develop new medicines, complex generics and biosimilars, and novel medical devices in identified priority areas.
Key Entities Referenced
Department of Pharmaceuticals: The primary agency implementing the schemes related to Bulk Drug Parks and Medical Devices Parks.
Production Linked Incentive (PLI) Scheme: A scheme that has multiple versions, including incentives for bulk drugs, pharmaceuticals, and medical devices, aimed at boosting domestic manufacturing.
Scheme for Promotion of Bulk Drug Parks: A scheme for establishing bulk drug parks with common infrastructure facilities in certain states.
Scheme for Promotion of Medical Devices Parks: A scheme aimed at providing easy access to common infrastructure facilities for medical device units set up in medical device parks.
Andhra Pradesh: One of the states where bulk drug parks have been approved.
Gujarat: One of the states where bulk drug parks have been approved.
Himachal Pradesh: One of the states where bulk drug parks have been approved.
Ministry of Chemicals and Fertilizers
Bulk Drug Parks
Posted On: 13 FEB 2026 5:25PM by PIB Delhi
There is no provision for Bulk Drug Parks under the Production Linked Incentive (PLI) schemes
implemented by the Department of Pharmaceuticals. However, the Department of Pharmaceuticals is
implementing another scheme, namely the scheme for Promotion of Bulk Drug Parks, with a budgetary
outlay of ₹3,000 crore, under which three bulk drug parks have been approved and are at various stages of
development in the States of Andhra Pradesh, Gujarat and Himachal Pradesh, through their respective
State implementing agencies. The total project cost of these parks is over ₹6,306.68 crore, with Central
assistance to the tune of ₹1,000 crore each for creation of common infrastructure facilities. These parks
envisage land and utilities such as power, water, effluent treatment plant, steam, solid waste management
and warehouse facilities at a subsidised rate to bulk drug or API manufacturers for units set up in the park.
The State implementing agencies of the States concerned have also offered fiscal incentives in the form of
capital subsidy on fixed capital investment, interest subsidy, State Goods and Services Tax reimbursement,
exemption of stamp duty and registration charges, etc. Further, the scheme provides for applicants for
allotment of land in the parks to set up units for manufacturing products prioritised in the PLI Scheme for
Bulk Drugs to have priority in land allotment.
While no Bulk Drug Park has been approved for Tamil Nadu under the said scheme, the Government is
promoting infrastructure development and investment in the pharmaceutical sector across the country,
including Tamil Nadu, through other initiatives such as Scheme for Promotion of Medical Devices Parks
and Production Linked Incentive (PLI) Scheme. The details of these schemes are as under:
(i) Scheme for Promotion of Medical Devices Parks: The Scheme for Promotion of Medical Devices
Parks aims to provide easy access to world-class, common infrastructure facilities to medical device
units set up in medical device parks. Under this scheme, three parks are being set up and are at an
advanced stage of development in Greater Noida, Uttar Pradesh, Ujjain, Madhya Pradesh and
Kanchipuram, Tamil Nadu. The total project cost of these Parks is ₹871.11 crore, with Central grant-in-
aid to the tune of ₹100 crore each for creation of common infrastructure facilities, which is expected to
enhance industry’s competitiveness and reduce production costs through optimisation of resources and
economies of scale. Civil construction for the three parks is at the final stages. As of December 2025,
199 medical devices manufacturers have been allotted land in the three parks in a 306.64 acre area and
34 units have commenced construction of their plants.
(ii) Production Linked Incentive (PLI) Scheme:
1. PLI Scheme for promotion of domestic manufacturing of critical KSMs/DIs/APIs in India
(commonly known as the PLI Scheme for Bulk Drugs): The scheme, which has a total budgetary
outlay of ₹6,940 crore, aims to avoid disruption in supply of critical active pharmaceutical
ingredients (APIs) used to make critical drugs for which there are no alternatives by reducing supply
disruption risk due to excessive dependence on single source. The scheme provides financialincentives on the sale of 41 identified KSMs/ DIs/ APIs products manufactured through greenfield
projects set up under the scheme. Under the scheme, 48 projects are approved for manufacturing of
33 bulk drugs, out of which 2 projects are approved from the State of Tamil Nadu.
2. PLI Scheme for Pharmaceuticals: The scheme, which has a total budgetary outlay of
₹15,000 crore, aims to enhance India’s manufacturing capabilities by increasing investment and
production in the sector and contributing to product diversification to high-value goods in the
pharmaceutical sector. It incentivises production of high-value medicines such as
biopharmaceuticals, complex generic drugs, patented drugs or drugs nearing patent expiry, auto-
immune drugs, anti-cancer drugs, etc. as well as production of KSMs/ DIs/ APIs other than those
notified under the PLI Scheme for Bulk Drugs, thereby contributing to self-reliance. Under the
scheme, 55 applicants are approved for manufacturing of pharmaceuticals and in-vitro medical
devices (IVDs) manufactured through both greenfield and brownfield projects. 16 manufacturing
units are situated in the State of Tamil Nadu.
3. Production Linked Incentive (PLI) scheme for promoting domestic manufacturing of
Medical Devices: The scheme has a budgetary outlay of ₹3,420 crore and a five-year performance-
linked incentive period from FY2022-23 to FY2026-27. Under the scheme, selected companies are
eligible for financial incentive for incremental sales of domestically manufactured medical devices
in the radiotherapy, imaging device, anaesthesia, cardio-respiratory and critical care and implant
device segments, for a period of five years. Under the scheme, out of total 28 approved projects two
have been approved in Tamil Nadu.
The Department of Pharmaceuticals is implementing the scheme for Promotion of Research and
Innovation in Pharma-MedTech Sector (PRIP) with an approved outlay of ₹ 5000 crore and scheme
duration of up to the financial year 2029-30 to strengthen research and innovation by supporting projects
across the innovation lifecycle from early research to product development and commercialisation.
Under the scheme, seven Centres of Excellence (CoEs) has been established, one at each National Institute
for Pharmaceutical Education and Research, with a focus on strengthening research infrastructure,
accelerating innovation, and enhancing industry-academia collaboration in identified areas. Of these, the
CoE at NIPER Hyderabad is focused on Bulk Drugs.
The scheme also provides financial assistance to industries, MSMEs, start-ups for eligible R&D projects
for the development or expeditious validation of new medicines; complex generics and biosimilars; and
novel medical devices in identified priority areas taken up either in-house or in collaboration with the
academia. The Scheme would incentivize eligible R&D and innovation projects and promote such
activities across States including the state of Tamil Nadu.
At present, there is no such proposal of the Government of India to establish a Bulk Drug Park in the
State of Tamil Nadu under the Scheme for Promotion of Bulk Drug Parks.
This information was given by Union Minister of State for Chemicals and Fertilizers, Smt. Anupriya Patel,
in a written reply in the Lok Sabha today.
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