The Hindu : Andhra Pradesh News : Tripartite agreement signed for Pharma City

Online edition of India's National Newspaper
Saturday, Jan 22, 2005

Andhra Pradesh

Andhra Pradesh

Tripartite agreement signed for Pharma City

By Our Special Correspondent

HYDERABAD, JAN. 21. A tripartite agreement covering developmental and sale aspects of the Jawaharlal Nehru Pharma City being set up at Parawada near Visakhapatnam was signed here today by Ramky Pharma City (India) Limited, the developer, the Bulk Drug Manufacturers' Association (BDMA) and the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).

Dubbed as India's first product-specific industrial park to house bulk drug units and allied chemical manufacturers, the project is coming up on a 2,120-acre land under public-private partnership. The RPCIL and APIIC would hold equity at 89 per cent and 11 per cent while the BDMA would coordinate the development. A large chunk of 1,400 acres was set aside for setting up units while 720 acres was for internal roads and other facilities.

Concessional rate

K. S. M. Rao and L. V. Subrahmanyam, Managing Director of the Pharma City wing of the RPCIL and APIIC, respectively, and B. Parthasarathy Reddy, president, BDMA, signed the agreements at the Secretariat in the presence of the Industries Minister, B. Satyanarayana, and Ayodhya Rami Reddy, chairman, RPCIL Group. The agreements provide for sale of 450 acres out of the 1,400 acres to BDMA members at a concessional rate of Rs 15 lakhs per acre instead of at Rs 21 lakhs fixed by previous Telugu Desam Government.

The RPCIL gained Rs 11 lakhs on each acre as it had paid only Rs 4 lakhs per acre to the Government but this amount was spent on creating infrastructural facilities at a cost of Rs 210 crores.

The Pharma City would be completed in all respects by next January retaining the State's third position in the drug industry. The Minister and Mr Reddy announced that global pharma majors such as Novartis and Pfizer had shown interest in setting up units. There would be 100-120 such units at the place by MNCs. The foreign investment would be around Rs 5,000-6,000 crores and that of the local units Rs 500-600 crores.

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