The proposed green-field medical devices park in Gujarat to scale up India’s potentials in the sector is yet to take off even after two years, as the final approval by the Planning Commission is still awaited.

Sources said the Department of Pharmaceuticals (DoP) had forwarded the proposal for allocation of Rs.300 crore, but it is yet to get the final clearance from the Planning Commission. This was conceived as the first such dedicated park for the sector in the country and was mooted to roll out a cluster approach to help the sector.

“It is likely to get the nod soon as the Steering Committee of the Planning Commission has also backed the proposal for inclusion in the 12th Five year Plan. Gujarat Government has already earmarked the land for the project which can take benefit from the recently announced National Manufacturing Policy 2011,” sources said.

“In order to tap the high growing medical devices manufacturing industry, particularly in the context of India, it is proposed to set up a specialized Park in the green field where integrated set of facilities would be provided for promoting growth of Medical Devices industry,” according to the report of the expert panel of the Planning Commission.

The medical devices park would focus on testing laboratory and common sterilization facility, medical instruments/equipment calibration and validation facility, engineering services like surface treatment, coating, electrical and mechanical maintenance etc. A training centre to train shop-floor, managers and entrepreneur level skills for industry, facilitation of business development on regulatory certifications, and product developments will also be part of the dedicated park.

As per the original proposal, the construction work on the park was expected to begin as early as November, 2009. The pre-feasibility study for setting up the greenfield ‘Medical Devices and Equipment Park’ was carried out by the financial services firm, IL&FS. The DoP also asked for a study by the National Institute of Pharmaceutical Education and Research (NIPER) to conduct a market study on the sector along with consultancy firm, Frost and Sullvian.

The medical device Industry in India is very nascent and is largely import dependent. More than 65 per cent of India’s requirement of medical devices and equipments are met through imports with domestic production being largely restricted to low technology disposable equipments. Global market for medical devices is valued at around US$ 200billion, growing at an average growth rate of around 4.5 per cent compounded annually during last 5 years.