Andhra Pradesh to set up Pharma City

Mumbai: After establishing a Cyber City in Hyderabad, Andhra Pradesh chief minister Chandrababu Naidu has set into motion a plan to set up a Pharma City in the port town of Vishakhapatnam.

By providing world-class infrastructure in the Pharma City, the state government hopes to attract global pharmaceutical companies to the city for outsourcing about 400 drugs in the post-patent regime by 2005.

Naidu has formed a task force on pharmaceuticals to draw up a detailed plan for infrastructure development so that Indian and international pharmaceutical companies can undertake research and development, clinical trials, manufacturing and marketing in a world-class environment.

At a recent meeting of the task force, which is headed by the chief minister, it was decided to set up a single window nodal agency for speedy implementation of projects.

The state government has appointed Dr. J.C. Mohanty, managing director of Andhra Pradesh State Financial Corporation, as the nodal officer for the projects initiated by the task force.

One of the projects is to set up a Pharma City under special economic zone (SEZ) at the port town of Vishakhapatnam to cater to the needs of global outsourcing in manufacturing of $90 billion generic drugs that are beyond the purview of the patent law.

The state government has earmarked 1,900 acres of land in the first phase. Additional 3500 acres of land will be added to the project in the second phase.

According to Venkat Jasti, a member of the task force and president of the Indian Pharmaceutical Alliance, the Pharma City will be developed by private companies in collaboration with the state government.

Pharma City will take all environment protection measures following global standards. It will also provide single window clearance to entrepreneurs who wish to set up a manufacturing base.

"There will be immense business opportunities after Jan 2005 when the patent regime expires. We expect several multinational companies to outsource the manufacturing of bulk drugs and generics to India, says Jasti. Already, Andhra Pradesh commands 40 per cent share of the Indian pharmaceutical industry.

Jasti says the state has the potential to become the main manufacturing base for various bulk drugs and generics. What we need is strong infrastructure support from the government and hassle-free atmosphere for promotion of pharmaceutical industry.