The Madhya Pradesh Government is planning to set up a Pharma Cluster at a cost of Rs 75 crore under the Government of India’s Industrial Infrastructure Upgradation Scheme (IIUS) in Indore.

“For this project, Central Government is expected to provide Rs 50 crore and the remaining will be taken by MP Government,” Vishwapati Trivedi, principal secretary, dept of commerce, industry& employment and public sector undertakings, Government of Madhya Pradesh, told Pharmabiz. A study was carried out by United Nations Industrial Development Organization (UNIDO) and found the need for this kind of intervention, he added.

A number of units have shown interest and now the Pharma Industry Association has to carry this forward as it is to be done by a Special Purpose Vehicle (SPV) which would be driven by Industry Associations as per the Scheme. The procedure to select a consultant is on, he said.

Indore has about 300 to 350 big and small basic drug and formulation units.

The IIUS aims at enhancing international competitiveness of domestic industry by giving financial assistance for creating quality infrastructure through public-private partnerships.

Under the IIUS, the government offers up to Rs 50 crore for each cluster. There is a provision of Rs 675 crore in Tenth Plan for the scheme. The government funding per cluster will be restricted to 75 per cent of the project cost. There will be no provision for any recurring expenditure. Other stakeholders including FIs would contribute 25 per cent of the project cost while corporates in the clusters would have to bear a minimum of 15 per cent.

Meanwhile, the Madhya Pradesh Government has invited entrepreneurs in the country to invest in pharmaceutical sector in the state to take advantage of various tax incentives and subsidies recently.

Indian Pharma majors like Ranbaxy, Nicholas Piramal, Lupin have their own facilities in Madhya Pradesh. Another company, IPCA Laboratories is setting up a new formulation plant at Pithampur in Madhya Pradesh, which will be commissioned by the end of 2005.