24 March 2026·PIB

Status of progress of bulk drug parks in Gujarat

In this note

1. At a Glance

Bulk Drug Parks are dedicated industrial clusters offering Common Infrastructure Facilities (CIF) to Active Pharmaceutical Ingredient (API) / Key Starting Material (KSM) manufacturers at subsidised rates [2][3].
Aim: cut import dependence on China for bulk drugs, achieve economies of scale, and lower domestic API manufacturing cost [1][3].
Gujarat hosts one of the three approved parks (with Andhra Pradesh and Himachal Pradesh); examinable as part of GS-III (Indian economy / pharma sector / Atmanirbhar Bharat) [2][3].

24 March 2026 PIB note from Department of Pharmaceuticals updated Parliament/public on construction progress, fund utilisation and Environmental Clearance status of the Gujarat park [1].

20.03.2020 — Union Cabinet approved the scheme "Promotion of Bulk Drug Parks" with outlay of ₹3,000 crore for 3 parks [1][3].
2022-23 — Three states (Andhra Pradesh, Gujarat, Himachal Pradesh) received in-principle approval after competitive evaluation [1][2].
February 2024 — Gujarat park received Environmental Clearance [1].
Antecedent: 2020 Cabinet-approved PLI scheme for KSM/Drug Intermediates/APIs addressing the same import-dependence concern post COVID-19 [2].

Nodal ministry: Ministry of Chemicals and Fertilizers — Department of Pharmaceuticals [1].
Scheme outlay: ₹3,000 crore; ceiling per park ₹1,000 crore [1][2].
Funding pattern: 70% of CIF cost for Gujarat & AP; 90% for hilly state Himachal Pradesh [2].
Gujarat park location: Tehsil Jambusar, District Bharuch, on 2,015.02 acres [2].
State Implementing Agency (SIA): Gujarat Industrial Development Corporation (GIDC) [1].
Total project cost (3 parks): ₹6,306.68 crore; Central assistance up to ₹1,000 crore each [2].
Other park sites: Haroli, Una (HP) — 1,402.44 acres; K.P. Puram & Kodhada, Thondagi mandal, East Godavari (AP) — 2,000.45 acres [2].

Economic

Reduces API import dependence (≈70% of India's API demand sourced from China pre-2020); strengthens "Pharmacy of the World" positioning [2][3].
Subsidised land + utilities (power, water, ETP, steam, solid waste, warehousing) cut unit-level capex/opex for API manufacturers [2][3].

Administrative

Centre funds CIF; states act through SIAs (GIDC in Gujarat). Of ₹600 crore released to GIDC in two ₹300 crore tranches, ₹341.44 crore utilised; ₹206.92 crore of ₹274.20 crore state share also utilised on CIF [1].
Civil tenders (roads, drainage, water, effluent collection, racks) awarded and largely completed on site; utility tenders (CETP, Solvent Recovery, TSDF) under execution [1].

Environmental

API manufacturing is solvent- and effluent-intensive; mandatory CETP, Solvent Recovery and TSDF built into CIF [1].
Environmental Clearance under EIA Notification 2006 obtained in Feb 2024 — precondition for civil works [1].

Strategic / Geopolitical

Part of Atmanirbhar Bharat pharma resilience stack alongside PLI (APIs/KSMs) and PLI 2.0 for pharma, reducing single-source vulnerability [2].

Feb 2024: Environmental Clearance for Gujarat park [1].
2024-26: GIDC awarded and largely executed civil CIF tenders; utility (CETP/Solvent Recovery/TSDF) tenders awarded, execution ongoing [1].
24 Mar 2026: PIB status update — ₹341.44 cr of ₹600 cr central grant utilised; ₹206.92 cr of ₹274.20 cr state funds utilised [1].

Scheme "Promotion of Bulk Drug Parks" approved by Union Cabinet on 20 March 2020 [1].
Implementing department: Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers (NOT MoHFW) [1].
Total scheme outlay: ₹3,000 crore; max ₹1,000 crore per park [1][2].
Approved states (FY 2022-23): Andhra Pradesh, Gujarat, Himachal Pradesh [1][2].
Gujarat site: Jambusar tehsil, Bharuch district; 2,015.02 acres [2].
Andhra Pradesh site: K.P. Puram & Kodhada, Thondagi mandal, East Godavari [2].
Himachal Pradesh site: Haroli tehsil, Una district [2].
Central assistance: 70% of CIF (general states), 90% of CIF (Himachal as hilly state) [2].
Gujarat SIA: Gujarat Industrial Development Corporation (GIDC) [1].
Gujarat park got Environmental Clearance in February 2024 [1].
Total combined project cost: ₹6,306.68 crore [2].
Two central tranches of ₹300 crore each released to GIDC; ₹341.44 cr utilised by Mar 2026 [1].

GS-III: Indian Economy — Industrial policy; Infrastructure; Investment models; Achievements of Indians in Science & Tech (Pharma).
GS-II: Government policies/interventions in health sector.
Question stems: 1. "Discuss how the Bulk Drug Parks scheme complements the PLI initiative in reducing India's pharmaceutical import dependence." (GS-III) 2. "Critically examine the progress and bottlenecks in implementation of Bulk Drug Parks in India." (GS-III) 3. "Evaluate the federal financing model of the Bulk Drug Parks scheme, with special reference to hilly versus non-hilly states." (GS-II)

PLI scheme for KSMs/DIs/APIs (2020) — twin pillar of API self-reliance.
PLI 2.0 for Pharmaceuticals — finished formulations/biologicals.
Medical Devices Parks scheme — parallel cluster approach.
Jan Aushadhi / PMBJP — affordable drug access end of chain.
National Pharmaceutical Pricing Authority (NPPA) — price regulation link.
EIA Notification 2006 — environmental clearance regime relevant to such parks.
Atmanirbhar Bharat Abhiyan — overarching framework.
India-China trade dependency in APIs — strategic context.

Confusing Bulk Drug Parks (CIF grant, Dept of Pharmaceuticals) with PLI for APIs (production-linked incentive, same department but distinct).
Wrong ministry: it is Chemicals & Fertilizers / Dept of Pharmaceuticals, NOT Ministry of Health & Family Welfare.
District for Gujarat is Bharuch (Jambusar) — not Ahmedabad or Vadodara.
Funding share for Himachal is 90% (not 70%) because of hilly-state classification.
Scheme caps assistance at ₹1,000 crore per park — easy to confuse with the ₹3,000 crore total outlay.