Bulk Drug Park Scheme

1. At a Glance

Central Sector Scheme by Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers, approved by Cabinet on 20 March 2020 to set up 3 Bulk Drug Parks with shared world-class Common Infrastructure Facilities (CIF) [S1].
Aim: cut API/bulk drug manufacturing cost, achieve economies of scale, and reduce import dependence on China (≈two-thirds of bulk drug imports) [S1][S3].
Total outlay ₹3,000 crore; tenure FY 2020-21 to FY 2026-27 [S1].

PIB release dated 06 Feb 2026 by Department of Pharmaceuticals reiterating scheme status and parameters [S1].
Budget 2026-27 series document highlights Bulk Drug Parks as a pillar of India's Global Biopharma Hub strategy [S3].

Driven by COVID-19 supply-chain shock (2020) exposing heavy reliance on Chinese APIs/KSMs [S3].
20 March 2020: Cabinet approves Bulk Drug Park scheme alongside PLI for KSMs/Drug Intermediates/APIs (₹6,940 crore outlay) [S1][S3].
July 2020: Scheme guidelines launched by Minister Sadananda Gowda [S3].
September 2022: 'In-principle' approval granted to Himachal Pradesh, Gujarat, Andhra Pradesh from among 13 state proposals; appraisal guided by Advisory Committee under CEO, NITI Aayog [S2].

Implementing Ministry: Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers [S1].
Outlay: ₹3,000 crore; per-park cap: ₹1,000 crore or 70% of CIF cost (90% for NE & Hilly States — HP, Uttarakhand, J&K, Ladakh) [S1].
Tenure: FY 2020-21 to FY 2026-27 [S1].
Selected sites [S2]:
Himachal Pradesh — 1402.44 acres, Haroli, Una district (90% assistance).
Gujarat — 2015.02 acres, Jambusar, Bharuch district.
Andhra Pradesh — 2000.45 acres, K.P. Puram & Kodhada, Thondagi Mandal, East Godavari.
CIF includes solvent recovery, distillation, power, steam, effluent treatment, testing labs, warehousing, logistics [S1].
Companion scheme: PLI for KSMs/Drug Intermediates/APIs (₹6,940 crore) — distinct from Park scheme [S3].

Economic: Targets reduction in production cost of bulk drugs and reverses chronic API trade deficit; two-thirds of bulk drug imports come from China [S3]. Supports India's tag of "Pharmacy of the World" in generics.
Strategic / Geopolitical: Reduces single-source dependence on Chinese KSMs—a national security concern post-Galwan and COVID-19 [S3].
Administrative / Federal: Cooperative federalism—states bid for parks; selection via NITI Aayog-led Advisory Committee using quantitative + qualitative scoring [S2]. State govts execute via SPVs; Centre funds CIF only.
Environmental: Bulk drug (API) manufacturing is Red-category polluting; common ETPs/solvent recovery at parks aim to internalise pollution control and ease site-level clearances [S1].
Scientific/Technological: Encourages fermentation-based and chemical synthesis APIs—segments where India lost ground to China since 1990s [S3].

Feb 2024: PM inaugurated 27 greenfield bulk drug projects (under PLI, complementary track) [S3].
Dec 2025 (PLI data): 38 of 48 PLI-API projects commissioned; ~56,800 MT/annum capacity; cumulative sales ₹2,720 crore; import substitution worth ₹2,192 crore [S3].
6 Feb 2026 PIB: Scheme parameters and tenure reaffirmed as Park work progresses [S1].
Budget 2026-27: Bulk Drug Parks positioned in 'Global Biopharma Hub' narrative [S3].

Bulk Drug Park scheme approved 20 March 2020 by Union Cabinet [S1].
Outlay: ₹3,000 crore; per-park cap ₹1,000 crore [S1].
Funding ratio: 70% of CIF; 90% for NE & Hilly States (HP, Uttarakhand, J&K, Ladakh) [S1].
Tenure: FY 2020-21 to FY 2026-27 [S1].
Three approved states: Himachal Pradesh, Gujarat, Andhra Pradesh (Sept 2022) [S2].
HP site: Una district (Haroli); Gujarat site: Bharuch (Jambusar); AP site: East Godavari (Thondagi Mandal) [S2].
Implementing ministry: Ministry of Chemicals & Fertilizers — Department of Pharmaceuticals (NOT MoHFW) [S1].
Appraisal committee chaired by CEO, NITI Aayog; proposals received from 13 states [S2].
Distinct from PLI for APIs/KSMs (₹6,940 crore) approved same year [S3].
HP qualifies for 90% assistance as a Hilly State [S1].
India imports nearly two-thirds of bulk drugs from China [S3].
Number of Bulk Drug Parks under scheme: only 3 (not state-wise unlimited) [S1].

GS-III: Indian Economy — Growth & Development; Government Budgeting; Industrial policy; Science & Technology (pharma).
GS-II: Government schemes; health sector governance.
Possible stems: 1. "Bulk Drug Park scheme and PLI for APIs are twin instruments to cure India's pharmaceutical import dependence." Discuss. 2. Evaluate the role of cooperative federalism in operationalising the Bulk Drug Parks scheme. 3. Examine how Bulk Drug Parks can transform India from a generics hub to a true 'Pharmacy of the World'.

Confusing Bulk Drug Parks (3 parks, ₹3,000 cr) with PLI for APIs (₹6,940 cr)—different instruments [S1][S3].
Wrong ministry: it is Chemicals & Fertilizers (Dept. of Pharmaceuticals), NOT Health & Family Welfare [S1].
Number of parks: only 3, not one per state.
Funding ratio: 70%/90% applies to CIF cost, capped at ₹1,000 cr—not unlimited.
Mixing up locations: AP park is in East Godavari (Thondagi), not Visakhapatnam [S2].

[S1] Bulk Drug Park Scheme — Press Information Bureau, 06 Feb 2026 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2224376 — (tier 1)
[S2] Centre Grants 'in-Principle' Approval of three Bulk Drug Parks to Himachal Pradesh, Gujarat and Andhra Pradesh — PIB — https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1856080 — (tier 1)
[S3] Transforming India into a Global Biopharma Hub — Budget 2026-27 Series / PIB / related PIB releases on PLI-API and API imports — https://static.pib.gov.in/WriteReadData/specificdocs/documents/2026/feb/doc202622776701.pdf ; https://www.pib.gov.in/PressReleasePage.aspx?PRID=2237414 ; https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2010924 — (tier 1)