The Chennai Pharma Industrial Infrastructure Upgradation Company (CPIIUC), the Special Purpose Vehicle floated by the Alathur Pharmaceutical Manufacturers Association (APMA) for the development of pharma cluster, has received Rs. 5.50 crore under Micro and Small Enterprises – Cluster Development Programme (MSE-CDP) Scheme of the Central government to develop infrastructure facilities at Alathur Pharma Estate.

This is the first phase of release of the total sanctioned amount of Rs. 63 crore for the Industrial Infrastructure Upgradation Scheme (IIUS) for the pharmaceutical cluster at Alathur, said S Lekshmi Narayanan, secretary of APMA.

This assistance of Rs. 550 lakhs is for the development of infrastructure facilities like laying of road, provision of water and sewage connection, storm water drainage, construction of culverts and renovation of the Common Effluent Treatment Plant at the pharma cluster estate. The developmental work will be commenced jointly by SIDCO and APMA soon.

The secretary said the association has to mobilize 20 per cent beneficiary contribution of the assistance, which is up to Rs. 110 lakhs, from the unit holders of the industrial site. Currently the pharma complex covers 23 companies making formulations, bulk drugs, cosmetics, medical devices and ayurvedic products. He said the association has already collected the margin money from the stakeholders and paid it to TN-SIDCO.

Other components of the project include development of water resources, water distribution system, common solid waste management system, quality control & material testing laboratories, product display & business development centre, information & communication technology systems, international marketing infrastructure, post manufacturing storage & distribution network, R&D, and clinical study & CRAs. The total amount earmarked for covering all these projects is Rs. 58 crore. Lekshmi Narayanan said these components are eligible for getting assistance as soon as the margin money is collected from the stakeholders.

Alathur Pharma Cluster is the third cluster developed by pharmaceutical associations with the assistance of Ministry of Micro and Small Enterprises in India. APMA expects the second phase of release of money in next March for the development of R&D in formulation. The cluster will be beneficial for the entire pharma manufacturing units of the state. The total project work will be completed in next five years, he said.

The infrastructure work includes the development of roads for 12 km inside the complex, 12 culverts and 12 sewage lines. The R&D centre will be constructed in front of the estate.

The Alathur Pharmaceutical Manufacturers Association has also tied up with four universities for research work in formulation.