The Union Chemicals and Fertilisers Ministry may propose the introduction of a special criterion for Special Economic Zones (SEZs) exclusively catering to pharmaceutical sector. The idea is to speed up the establishment of pharma SEZs in various parts of the country.

The C&F Ministry may suggest sanctioning pharma SEZs in 50 hectares of land for the easy establishment of the zones. The ministry is of the view that a SEZ in an area of 50 hectares would require an investment of Rs 100 to 120 crores on land and development. It would be able to attract an investment of Rs 1000 crores and would be able to generate exports worth Rs 2000 crores and employment to about 6000 people.

While the minimum area required can be 50 hectres to begin with, such estates can be expanded after the successful take off of the scheme. Interestingly, the Pharmaceutical Exports Promotion Council (Pharmexcil) had recently appealed to the Commerce Ministry to consider pharma SEZs differently from other SEZs due to the unique nature of the industry. The council had said that the common laws governing SEZs cannot be applied to the pharmaceutical sector considering the critical nature of its establishment.

Pharmexcil wanted the Commerce Ministry to announce a separate category of Pharma SEZs and draw tailor made rules for such zones. The C&F ministry's plan is likely to prove as indirect support to the Pharmexcil cause. Environmental clearance being one of the major hurdles before the setting up of chemical or pharma SEZs, the ministry would want respective state governments grant all necessary clearances at the state level itself. The pharma city at Vishakhapatnam, Andhra Pradesh, is the first major pharma SEZ in the making. The government had announced plans to facilitate the growth of more such zones for the benefit of the pharmaceutical industry.