Dr K S M Rao, managing director, Ramkey Pharma City (India) Ltd, developers of the Jawaharlal Nehru Parma City at Visakhapatnam, told Pharmabiz that there was no question of shifting it either fully or partly to Himachal Pradesh. Ayodhya Rama Reddy, chairman of the Group, also scotched all such rumours. A spokesman of the Andhra Pradesh Industrial Infrastructure Corporation also said there was no move to shift the Pharma City to anywhere else.

Rao explained that some of the individual pharma units are attracted to Himachal Pradesh and a couple of other smaller states who have declared a tax holiday for new pharmaceutical units. However, considering the superior infrastructure and other facilities available at Visakhapatnam, many of the pharma and bulk drug manufacturing companies have decided to stay put in Andhra Pradesh, particularly those based in Hyderabad and Visakhapatnam.

He said Andhra Pradesh, comparatively a much bigger though not in a position to declare a tax holiday, was providing 50% concessions on the development charges for the pharma companies and drug making units who were setting up their units in Visakhapatnam Pharma city. This would more or less compensate them in a way for the tax holiday. Hyderabad has the added advantage of having several R&D units like the IICT, CCMB, Shanta Biotech and Dr Reddy's Lab.

The developers had also reduced the land price for the bulk drug manufacturers from Rs 21 lakh per acre quoted earlier to Rs 15 lakh now. This was attracting many bulk drug manufacturers to the Pharma City. A decision in this regard was taken following a representation made by the BDMA and the intervention of Chief Minister Y S Rajasekhar Reddy to encourage bulk drug manufacturers to set up new pharma units in the Pharma City. It was the previous Telugu Desam Government which had fixed the land price at Rs 21 lakh per acre which the BDMA members thought was on the higher side. About 400 acres are available for sale to the BDMA to set up bulk drug units.

A full-fledged state-of-the art laboratory will be set up in Pharma City to undertake simple to complex analysis. Laboratory services including testing of water, raw materials, chemicals, intermediates, drugs, all environment parameters - air, water, soil, hazardous waste etc. will be made available.