Drug makers seek land for 2nd pharma city in AP

HYDERABAD/VISAKHAPATNAM: Buoyed by a healthy demand, the Bulk Drug Manufacturers Association (BDMA) has urged the AP government to allot 3,000 acres for setting up a second Pharma City. BDMA had played a crucial role in the establishment of the existing Jawaharlal Nehru Pharma City (JNPC) in Vizag in 2004.

"There is no land for expansion in the existing Pharma City, which is why we have requested AP CM N Chandrababu Naidu to give us the opportunity to start something else. We have already worked with 2,400 acres in the JNPC in Vizag and need more land as a lot goes for common infrastructure. So unless there is a critical mass, the developers will not be interested," BDMA president Jayant Tagore told TOI.

Tagore pointed out that the bulk drug industry is keen on a land parcel that is close to a big seaport and airport, which is why the parcel has to be either near Tada, which is close to Chennai, or between Kakinada and Vizag.

"At JNPC, we still have space for around 15 more companies. But I feel there is need to have another Pharma City because we are getting a lot of queries from small domestic pharma players who require plots of land of about two to five acres. JNPC is not able to fulfill the demand of smaller players as we have bigger plots," JNPC chief executive officer Lal Krishna said.

He also said that if the minimum alternate tax (MAT) issue is resolved, many more MNCs will consider setting up units in Vizag.

According to Lal Krishna, Vizag is drawing a lot of interest from pharma players, especially bulk drug manufacturers, because of good infrastructure. "Very few places in the country can boast of a seaport, along with an international airport and highway connectivity," he explained.

Confirming the trend, Sanjit Singh Lamba, managing director of Japanese pharma giant Eisai India’s operations said, "There are a couple of MNC and Indian players within the JNPC who want to expand but do not have adequate land. Hence, certainly there is a need for another pharma cluster. I feel another reason that many small pharma players are keen on coming to AP is because of the much-talked about special incentives."

Meanwhile, Andhra Pradesh Industrial Infrastructure Corporation (APIIC) chairman P Krishnaiah said, "We will definitely initiate steps to acquire land, if necessary, for another pharma city."