Parliament Question: Bulk Drug Parks

GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF PHARMACEUTICALS LOK SABHA UNSTARRED QUESTION No. 2454 TO BE ANSWERED ON 13th FEBRUARY, 2026 Bulk Drug Parks

2454. Shri Malaiyarasan D:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

(a) the current status of the Bulk Drug Parks promoted under the Production Linked Incentive

(PLI) Scheme including locations identified and operational status in Tamil Nadu;

(b) the total investment committed and employment generated so far in such Bulk Drug Parks in the said State;

(c) the incentives and support provided to MSMEs and start-ups within the said parks;

(d) whether any steps have been taken by the Government to promote research and development and innovation in bulk drug manufacturing in the said State; and

(e) the future plans and timeline for establishing additional Bulk Drug Parks in the State? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SMT. ANUPRIYA PATEL)

(a) to (c): Sir, 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 financial incentives 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 periodof five years. Under the scheme, out of total 28 approved projects two have been approved in Tamil Nadu.

(d): 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.

(e): 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. *****