More than 90 pharmaceutical and allied sector companies from various countries are set to invest more than Rs 3000 crore in Gujarat within a period of two years from 2009, it is learnt.
Almost 23 Memorandum of Understanding (MoU) between the companies and the state government will be signed on 13 January, 2009, on the occasion of Vibrant Gujarat 2009, the latest edition of the biennial investors' summit being organised by the government of Gujarat to attract investment in all industry segments. Out of these MoUs, an agreement between the Gujarat Board of Indian Drug Manufacturers Association (IDMA) will cover projects from around 71 of its member companies worth nearly Rs500 crore.
The investment to be made in pharmaceutical industry through the event this year is almost 10 fold more than the investment announced in last edition of Vibrant Gujarat held in 2007. In 2007, four companies signed agreement with the government to invest a total amount of approximately Rs 350 crore within a time span of two years. All the projects have materialised between the last two years, informed official sources.
"The proposals we have received are on various types of projects including expansion of current facilities, setting up of new manufacturing and R&D units and technology upgradation. The chief minister of Gujarat will sign the MoUs on the second day of Vibrant Gujarat 2009," said H G Koshia, joint commissioner, Gujarat Food and Drugs Control Administration (FDCA).
"The growth of investments going 10 fold higher shows a positive sign for industry in Gujarat at the time of global financial meltdown," he added. The list of investors include a few foreign companies and the Gujarat-based pharma majors like Zydus Cadila, Cadila Pharmaceuticals and Intas Pharmaceuticals.
In addition to this, another 19 MoUs in Biotech sector will also be signed between the companies and the state government in the investors' summit. Investment of more than Rs 1000 crore will be made in various biotech segments.
The industry friendly industrial policy which is updated frequently to adopt changes in the sectors and the hassle free bureaucratic set up gives an edge to the Gujarat state in inviting more investment, commented Koshia. Ministers from state and central governments will be present in the Vibrant Gujarat to share ideas with the industry and seminars on various industrial topics will be held adjoining to the investors' summit. Even before a week of the event, the health ministry is receiving proposal from pharmaceutical companies to invest through the event, he informed.
The proposals were monitored and approved by the health ministry under the leadership of state health minister Jay Narayan Vyas and Rita Teotia, principal secretary, Ministry of Health and Family Welfare, Government of Gujarat who is also the nodal officer for pharmaceutical sector in Vibrant Gujarat 2009.