The Government of India has given in-principle approval to Andhra Pradesh for setting up a Bulk Drug Park (BDP), with a grant-in-aid of Rs 1,000 crore, under the Promotion of Bulk Drug Parks scheme of the Department of Pharmaceuticals. N Yuvaraj, Joint Secretary in the Union Department of Pharmaceuticals, communicated this to the state government on Tuesday, August 30, asking it to convey its approval within seven days and further, submit a Detailed Project Report within 90 days. Bulk drugs, also called active pharmaceutical ingredients (APIs), are the main ingredients of a drug or medicine, which helps provide certain therapeutic effects or an intended pharmacological activity. It is the ingredient that makes a product a medicine, like paracetamol or penicillin for example. 

The Union government’s grant is for the creation of common infrastructure facilities in the BDP at the proposed location in Thondangi mandal in East Godavari district. Andhra Pradesh is the only state in south India to receive the grant-in-aid for the BDP. Telangana, Karnataka and Tamil Nadu were also in competition for the grant, according to The New Indian Express. The state Cabinet had in August 2020 approved the setting up of the BDP in East Godavari district with an investment of Rs 6,940 crore, for which a special purpose vehicle called AP Bulk Drug Infrastructure Corporation was also constituted. The state government will now have to scout for a private partner to develop the BDP at an extent of 2,000 acres. 

The scheme for Promotion of Bulk Drug Parks being implemented by the Department of Pharmaceuticals will facilitate the setting up of three such parks in the country, with the objective to bring down the cost of manufacturing of bulk drugs by creating world class common infrastructure facilities. While 13 states across the country competed for the BDP under the scheme, Gujarat, Himachal Pradesh and Andhra Pradesh emerged successful.