**Executive Summary**
This report provides an update on the "Promotion of Bulk Drug Parks" scheme, specifically focusing on the progress of the bulk drug park in Gujarat as of March 2026. The project aims to reduce manufacturing costs and achieve economies of scale through subsidized world-class common infrastructure. Key developments include the utilization of significant central and state grants and the near completion of major civil works.
**Key Points / Main Content**
**Scheme Overview and Financial Framework**
* **Objective:** Facilitate the creation of three Bulk Drug Parks (Gujarat, Andhra Pradesh, and Himachal Pradesh) to lower bulk drug manufacturing costs via Common Infrastructure Facilities (CIF).
* **Funding Model:** The Central Government provides financial assistance up to ₹1,000 crore per park, covering 70% of the project cost (90% for North-Eastern and Himalayan States).
* **Subsidized Utilities:** Parks offer land, power, water, steam, warehouse facilities, and waste management systems at subsidized rates.
**Financial Status in Gujarat**
* **Central Grants:** The Gujarat Industrial Development Corporation (GIDC) has utilized ₹341.44 crore out of ₹600 crore received in Central Grant-in-Aid.
* **State Contribution:** ₹206.92 crore has been utilized from the ₹274.20 crore allocated from State funds.
**Infrastructure Progress in Gujarat**
* **Approvals:** Environmental clearance was granted in February 2024.
* **Civil Works:** Most work for road, drainage, and water infrastructure is complete on-site.
* **Utility Facilities:** Tenders for the Common Effluent Treatment Plant (CETP), Solvent Recovery, and Treatment Storage & Disposal Facilities are awarded; parking tenders were awarded in November 2025.
* **Pending Procurement:** The tender for Steam Generation has been released and is currently under evaluation.
* **Connectivity:** A 4 km approach road is complete, and the installation of a 40 km water pipeline from the Narmada Canal has commenced.
**Impact Analysis**
**Bulk Drug Manufacturers**
**Impact**
They gain access to world-class common infrastructure and utilities at subsidized rates, which is expected to lower production costs and increase manufacturing efficiency.
**Action Required**
Plan for the transition of production facilities to these parks to benefit from economies of scale.
**Gujarat Industrial Development Corporation (GIDC)**
**Impact**
As the State Implementing Agency, they are responsible for the execution of civil works and the management of both Central and State funds.
**Action Required**
Complete the installation of the 40 km water pipeline and finalize the evaluation of the steam generation tender.
**Department of Pharmaceuticals / Central Government**
**Impact**
The department is responsible for monitoring the progress and ensuring the scheme meets the national objective of self-reliance in bulk drug production.
**Action Required**
Continue oversight of project milestones and manage the disbursement of remaining grant installments based on progress.
Key Entities Referenced
Promotion of Bulk Drug Parks: A central government scheme aimed at reducing manufacturing costs of bulk drugs by providing financial assistance for creating common infrastructure facilities.
Department of Pharmaceuticals: The primary department under the Ministry of Chemicals and Fertilizers responsible for implementing the Bulk Drug Parks scheme.
Gujarat Industrial Development Corporation (GIDC): The designated State Implementing Agency (SIA) responsible for the development and utilization of funds for the bulk drug park in Gujarat.
Gujarat: The primary state location for which the progress of infrastructure development, fund utilization, and environmental clearances are reported.
Ministry of Chemicals and Fertilizers :
Department of Pharmaceuticals
Status of progress of bulk drug parks in Gujarat
Posted On: 24 MAR 2026 4:05PM by PIB Delhi
The Department of Pharmaceuticals is implementing the scheme for “Promotion of Bulk Drug Parks”. The
scheme for promotion of Bulk Drug Parks was approved by the Cabinet on 20.03.2020 to facilitate setting
up of three (3) Bulk Drug Parks in the country with the objective to bring down the cost of manufacturing
of bulk drugs by creation of world class common infrastructure facilities. It would also help in creation of
economies of scale for production of bulk drugs.
Under the scheme, three Bulk Drug Parks were approved in FY 2022-23 in the States of Andhra Pradesh,
Gujarat and Himachal Pradesh. Financial assistance from the Central Government is provided for creation
of Common Infrastructure Facilities (CIF), subject to a maximum of 1,000 crore per park, or 70% of the
project cost (90% in the case of North-Eastern and Himalayan States), whichever is less.
The bulk drug parks are offering land and utilities such as power, water, effluent treatment plant, steam,
solid waste management, warehouse facilities at a subsidized rate.
The State Implementing Agency, Gujarat Industrial Development Corporation, has utilised ₹341.44 crore
out of the two instalments of ₹300 crore each received as Central Grant-in-Aid, and ₹206.92 crore out of
₹274.20 crore from State funds, towards the development of CIF.
The present status of progress of the CIF under Gujarat bulk drug park is as under:
The environmental clearance was granted to the Gujarat Bulk Drug Park in February 2024. All the
common infrastructure facilities related civil tenders, such as road, drainage, water infrastructure,
effluent collection and rack system are awarded and approximately most of the work has been
completed on site.
CIF Utility tenders like Common Effluent Treatment Plant (CETP), Solvent Recovery, Treatment
Storage & Disposal Facilities, have also been awarded and a small portion of the work has been
completed on site. Tender of parking has been awarded in November, 2025.
Tender of Steam Generation is released and is under evaluation.
In addition to above CIF work, State Implementing Agency (SIA) has completed construction of an
approach road of 4 km and has initiated the installation of a water pipeline to draw surface water
from the Narmada Canal, located approximately 40 km from the Bulk Drug Park site.
This information was given by Minister of State for Chemicals and Fertilizers, Smt. Anupriya Patel, in a
written reply in the Rajya Sabha today.
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