13 February 2026·PIB

Bulk Drug Parks

In this note

1. At a Glance

Centrally Sponsored Scheme by the Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers, to set up 3 mega Bulk Drug Parks with shared world-class infrastructure to reduce manufacturing cost of APIs/KSMs/Drug Intermediates [1][2].
Strategic goal: cut import dependence (mainly on China) for bulk drugs that form the active ingredient of formulations, advancing Atmanirbhar Bharat in pharma [3].
Outlay: ₹3,000 crore (FY 2020-21 to FY 2024-25); Central grant capped at ₹1,000 crore/park [1][4].

PIB (13 Feb 2026): DoP clarified Bulk Drug Parks are NOT under the PLI scheme but under a separate scheme; three parks in Andhra Pradesh, Gujarat, Himachal Pradesh are at various stages of development; total project cost ₹6,306.68 crore, Central assistance ₹1,000 crore each [4].
Union Budget FY 2026-27 flagged Chemical/Bulk Drug Parks for continued support [5].

March 2020: Union Cabinet approved the Scheme for Promotion of Bulk Drug Parks (notified 2020) — triggered by COVID-19 exposure of API import vulnerability [1][2].
Launched alongside complementary PLI Scheme for KSMs/DI/APIs (₹6,940 crore) by then Union Minister D.V. Sadananda Gowda [6].
Sept 2022: 'In-principle' approval to Himachal Pradesh, Gujarat, Andhra Pradesh [2].
Predecessor context: India imports ~60–70% of bulk drugs (largely China); 2020 KSM/API scheme + Bulk Drug Park scheme = twin pillars [3].

Nodal Ministry: Ministry of Chemicals & Fertilizers; Department: Department of Pharmaceuticals [4].
Scheme Type: Central Sector Scheme (Grants-in-Aid to States) [1].
Outlay: ₹3,000 crore [1][4].
No. of Parks: 3 [1].
Central Assistance: 70% of CIF project cost (general States); 90% for Hilly/NE States; cap ₹1,000 cr/park [2].
Approved States & Sites:
Himachal Pradesh — 1,402.44 acres, Haroli tehsil, Una district [2].
Gujarat — 2,015.02 acres, Jambusar tehsil, Bharuch district [2].
Andhra Pradesh — 2,000.45 acres, K.P. Puram & Kodhada, Thondangi Mandal, East Godavari [2].
Total project cost (3 parks): ₹6,306.68 crore [4].
Common Infrastructure Facilities (CIF): CETP, solid waste mgmt, storm-water drains, solvent storage/recovery, common warehouse, dedicated power sub-station, water (raw/potable/DM), steam, cooling, logistics, advanced testing lab, emergency response, safety audits centre, Centre of Excellence [1].
Implementation: Through State Implementing Agencies (SIAs) — utilities provided at subsidised rates [4].

Economic

Reduces input cost of APIs via shared infra → lifts price-competitiveness of Indian formulations exports (~$25 bn industry) [1][3].
Attracts large investment; complements ₹6,940 cr PLI for 41 critical KSMs/DI/APIs [6].

Strategic / Geopolitical

Reduces ~60–70% import dependence on China for bulk drugs — supply-chain de-risking post-COVID [3].

Environmental

Mandatory CETP, solvent recovery, solid waste & hazardous ops audits centralise pollution control for a notoriously polluting sector [1].
Risk: clustering hazardous units (e.g., Bharuch) increases localised environmental load — needs strict zero-liquid-discharge norms.

Administrative / Federal

Centre–State partnership model: Centre funds CIF; State arranges land, clearances, off-site utilities via SIA [1][4].
Three-State selection through competitive challenge method (ranking-based) [2].

Scientific / Technological

Promotes domestic manufacturing of fermentation-based and chemical-synthesis-based KSMs (e.g., Penicillin-G, 7-ACA) where India lost capacity [3].

13 Feb 2026 (PIB): Reiterated Bulk Drug Parks are separate from PLI; ₹6,306.68 cr project cost; Central aid ₹1,000 cr × 3 [4].
Budget FY 2026-27: Continued Chemical Parks push [5].
Parks at "various stages of development" — implementation through SIAs ongoing in AP, Gujarat, HP [4].

Scheme nodal department: Department of Pharmaceuticals (NOT Dept. of Chemicals & Petrochemicals) [4].
Parent ministry: Ministry of Chemicals & Fertilizers [4].
Total outlay: ₹3,000 crore [1].
Number of Bulk Drug Parks: 3 [1].
Max Central grant per park: ₹1,000 crore [1].
Funding ratio: 70% of CIF (general), 90% for Himalayan/NE States [2].
States selected: Andhra Pradesh, Gujarat, Himachal Pradesh [2].
AP site: East Godavari district [2].
Gujarat site: Bharuch district (Jambusar) [2].
HP site: Una district (Haroli) [2].
Cabinet approval: March 2020 [1].
Scheme is NOT part of PLI; separate scheme [4].
Total project cost of 3 parks: ₹6,306.68 crore [4].
Targets: KSMs, Drug Intermediates, APIs (bulk drugs) [3].

GS-III: Indian Economy → Industrial Policy; Government schemes for growth; Inclusive growth & infrastructure.
GS-II: Government policies/interventions for development in health sector.
Possible question stems: 1. "Reducing India's import dependence for bulk drugs requires more than fiscal incentives." Critically examine in light of the Bulk Drug Parks scheme and PLI for APIs. 2. "Cluster-based manufacturing is the dominant model for India's pharma self-reliance push." Discuss with reference to Bulk Drug Parks. 3. Discuss the environmental and federal challenges in operationalising Bulk Drug Parks.

PLI Scheme for Bulk Drugs (KSMs/DI/APIs) — twin pillar with Bulk Drug Parks [6].
PLI for Pharmaceuticals — covers formulations & complex generics.
Medical Devices Parks Scheme — parallel cluster scheme by DoP [6].
National Pharmaceutical Pricing Authority (NPPA) — affordability angle.
Jan Aushadhi (PMBJP) — downstream affordability.
Atmanirbhar Bharat Abhiyan — supply-chain self-reliance umbrella.
India–China trade dependence — strategic context.
CETP/Zero Liquid Discharge norms — environmental angle for pharma clusters.

Wrong scheme family: Bulk Drug Parks is a stand-alone Central Sector scheme, not a PLI scheme — explicitly clarified by DoP [4].
Confusing with PLI for APIs: That is a separate ₹6,940 cr scheme covering 41 products [6].
State list: Often wrongly recalled as Telangana/Karnataka — correct list is AP, Gujarat, HP [2].
Funding cap: ₹1,000 cr is the ceiling per park, not per State annually [1].
90% funding applies only to Himalayan/NE States (HP qualifies); not to AP/Gujarat [2].
District for AP: now part of Kakinada district after AP's 2022 re-organisation, but PIB still references East Godavari — note both [2].