The government of Andhra Pradesh will soon call for private partnership to develop its most ambitious Pharma City Project, a dedicated pharmaceutical park planned in 1900 acres of land near Vizag. The final feasibility study for the project is to be tabled before the government within three months from now and the state government is likely to announce its private partner for infrastructure development by November 2002. A joint venture company partnering the government and the private developer would oversee the implementation of the park and it's functioning thereafter.

According to Jainder Singh, principal secretary, government of Andhra Pradesh, the locations identified for the project is close to the four lanes Asian Development Bank supported National Highway connecting Chennai and Kolkatta. It is just 20 km away from Airport and from the Seaport. He informed that works on a 220 / 132 / 33 KV electrical substation are to start immediately. The government is planning to get environmental clearance for entire city and save individual companies setting shop there from the burden of obtaining such sanctions. The Pharma City will have an integrated common effluent treatment plant (CETP) facility. The government has also ordered a fresh Environment Impact Assessment for the chemical nature of the entire project.

Singh said that the government's role in the Pharma City will that be of a facilitator and the private partner on behalf of the government would professionally manage the city. He said that Pharma city was never a bureaucratic decision. "The suggestion came from the industry at the Pharma Task Force meeting and a joint team identified the locations. About 70% of the investment is expected from abroad," he said.

Another interesting aspect of the proposed Pharma City is that unless the entire infrastructure is developed, no land allotment will take place here. "The government do not want vast tract of land being acquired by individual companies and kept barren. The plots will be leased out at a premium rate thereby compensating for the infrastructure costs."

The Pharma City, coming up with an estimated cost of Rs 600 - 700 crore, can have about 170 units and is likely to attract at least 300 new proposals worth 25,000 crores in chemical industry. It is expected to be functional by 2004. The location of the city was selected keeping in mind its proximity to the Vizag port and the Special Economic Zones (SEZs) being developed there.

The city, which is to be designed in a comprehensive way so as to meet all international norms on waste management and quality control, will provide infrastructure for the entire gamut of activities like drug discovery, research, clinical trials, manufacturing and marketing. The city is going to be the future hub of bulk drug manufacturing due to the hassle free environment the government is to provide to the companies.

The AP Industrial Infrastructure Corporation (APIIC) is to be the nodal agency for the 'Pharma City'.