Date:22/01/2005 URL: http://www.thehindubusinessline.com/2005/01/22/stories/2005012202291500.htm

Back BDMA, Ramky sign pact for Pharma City lands

Our Bureau

Hyderabad , Jan. 21

ACHIEVING a benefit of over Rs 22 crore in the form of revised tariff for the allocation of lands in the proposed Jawaharlal Nehru Pharma City at Parawada near Visakhapatnam, the Bulk Drugs Manufacturers Association (BDMA) has entered into an agreement with Ramky Pharma City (India) Ltd (RPCIL), the developers of the Pharma City.

Towards this, both parties, along with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC), have finalised sale and development agreements.

The Andhra Pradesh Government has facilitated these agreements after protracted discussions between the developers of Pharma City and industrial establishments belonging to BDMA, the State Major Industries Minister, Mr B. Satyanarayana, told newspersons here on Friday.

Pharma City is being developed on 2,120 acres by RPCIL, in association with APIIC, with equity of 89 per cent and 11 per cent respectively on a public private partnership model on build-own-operate basis.

According to the minister, the State Government has exempted 50 per cent of conversion charges payable to the Visakhapatnam Urban Development Authority by the developer for the establishment of Pharma City. Under the agreements, 450 acres of land will now be sold to the BDMA members at concessional rates of Rs 15 lakh per acre.

The BDMA President, Dr B. Parthasarathy Reddy, said Pharma City was expected to attract investments of around Rs 6,000 crore, while the industrial establishments belonging to the State alone were expected to invest up to Rs 1,000 crore. So far, 45 State-based pharma companies have booked lands at Pharma City, he said.

The Ramky Group Chairman, Mr Ayodhya Rami Reddy, said Pharma City had made considerable progress in obtaining statutory clearances. Following a public hearing, the Andhra Pradesh Pollution Control Board has awarded the consent for establishment.

Stating that the Union Ministry of Environment held meetings with the developers and consultants on the issue of environmental clearances, Mr Reddy said RPCIL and APIIC had recently sought a waiver of environment clearance for individual industries under the cluster concept.

According to Mr Reddy, Pharma City has, so far, received interest from various players including Novartis, Pfizer and the Singapore-based Sembcorp Inc.

Taking to presspersons later, the minister said the State Government would soon come out with the New Industrial Policy effective from April 1, with focus on attracting food processing and agri-based industries.

Stating that no tax holidays would be possible now in the new VAT regime, he said the State Government would accordingly evolve a policy that would provide land for industrial units at concessional rates along with subsidised power to evolve the State as a preferred investment destination in the country.