- The Centre has directed states to submit details of costs and incentives by October 15
- Based on the prices states give to the industry, pharma parks project will be allotted to 3 states
- KT Rama Rao opposed the proposal of costs being the sole criterion for handing out pharma projects
THD NewsDesk, Hyderabad: On October 5, the Telangana government challenged the Centre’s proposal to allocate bulk pharma parks project to states through the challenge mode. Industries Minister KT Rama Rao objected to the unfair emphasis on the states’ costs and incentives to the industry.
Protesting against the Union’s proposal, Rao wrote a letter to the Union Minister of Chemicals and Fertilizers DV Sadananda Gowda. Through the message, Rao complained that,
“Costs should not be the only factor for selection as there are many non-tangible factors which are also responsible for the success of the pharma industry.”
Advocating for amendment of the scheme guidelines, he asked the Union “To recognize and prioritize the readiness of the project/applicants, including planning, environmental clearances, etc. as the primary criteria for selection of the applications.”
Union’s recent proposal to dispense Rs 1,000 crore for all the three pharma parks based on –
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- Competitive land prices
- Power tariffs
- Incentives
- Timely approvals by states
Rao contended that the “Availability of ecosystem conducive to API manufacturing and demand from industries to set-up manufacturing units should also be given maximum emphasis as part of your selection process.”
“However, the objective of creating a knowledge-driven economy will be defeated as talent attraction and retention will be a major challenge in such places. These factors also contribute significantly to the competitiveness of the industry and also will involve costs associated with housing, transportation of employees, etc. Such locations will also not be attractive for global investors,” he pointed out.
The Centre has directed the state governments to relinquish details of the cost and incentives and the application by October 15.
Telangana government asserted that the land costs in a city like Hyderabad would naturally be higher than that of a site located on the outskirts. However, an equal weightage must be given to the other factors that make the areas conducive to the industry’s growth. He also emphasized on the efforts of the state towards developing Hyderabad Pharma City. The contribution of the country throughout the three years has stimulated the domestic manufacturing of pharmaceuticals.
