There is no provision for bulk drug parks under the Production Linked Incentive (PLI) schemes implemented by the department of pharmaceuticals. However, the department is implementing a separate scheme for the promotion of bulk drug parks with a budgetary outlay of ₹3,000 crore. Under this scheme, three bulk drug parks have been approved and are at various stages of development in Andhra Pradesh, Gujarat, and Himachal Pradesh through their respective state implementing agencies.
The total project cost of these parks is over ₹6,306.68 crore, with central assistance of ₹1,000 crore each for the creation of common infrastructure facilities. The parks are designed to provide land and utilities — including power, water, effluent treatment plants, steam, solid waste management, and warehousing — at subsidised rates to bulk drug or API manufacturers setting up units within the parks. The respective state implementing agencies are also offering fiscal incentives such as capital subsidies on fixed capital investment, interest subsidies, State Goods and Services Tax (SGST) reimbursement, and exemptions from stamp duty and registration charges.
The scheme further provides that applicants seeking land allotment to manufacture products prioritised under the PLI scheme for bulk drugs will receive preference in land allocation.
While no bulk drug park has been approved for Tamil Nadu under this scheme, the government is promoting infrastructure development and investment in the pharmaceutical sector across the country, including Tamil Nadu, through other initiatives such as the scheme for promotion of medical devices parks and various PLI schemes.
Details are as follows:
(i) Scheme for Promotion of Medical Devices Parks:
This scheme aims to provide easy access to world-class common infrastructure facilities for medical device units established in designated parks. Three parks are being set up and are at an advanced stage of development in Greater Noida (Uttar Pradesh), Ujjain (Madhya Pradesh), and Kanchipuram (Tamil Nadu).
The total project cost of these parks is ₹871.11 crore, with central grant-in-aid of ₹100 crore each for creating common infrastructure. The initiative is expected to enhance industry competitiveness and reduce production costs through resource optimisation and economies of scale. Civil construction at all three parks is in its final stages.
As of December 2025, 199 medical device manufacturers have been allotted land across 306.64 acres in these parks, and 34 units have commenced construction of their facilities.
(ii) Production Linked Incentive (PLI) Schemes:
- PLI Scheme for Bulk Drugs:
With a total budgetary outlay of ₹6,940 crore, this scheme aims to reduce supply disruption risks for critical APIs by decreasing dependence on single sources. It provides financial incentives on sales of 41 identified KSMs, DIs, and APIs manufactured through greenfield projects. So far, 48 projects have been approved for manufacturing 33 bulk drugs, including two projects in Tamil Nadu. - PLI Scheme for Pharmaceuticals:
This scheme has a budgetary outlay of ₹15,000 crore and seeks to enhance India’s manufacturing capabilities by promoting investment, increasing production, and encouraging diversification into high-value pharmaceutical products. It incentivises the production of biopharmaceuticals, complex generics, patented drugs or those nearing patent expiry, autoimmune and anti-cancer drugs, and other high-value medicines, as well as KSMs, DIs, and APIs not covered under the Bulk Drugs PLI scheme.
A total of 55 applicants have been approved for manufacturing pharmaceuticals and in-vitro medical devices (IVDs) through greenfield and brownfield projects. Of these, 16 manufacturing units are located in Tamil Nadu.
- PLI Scheme for Medical Devices:
With a budgetary outlay of ₹3,420 crore, this scheme provides performance-linked incentives for incremental sales of domestically manufactured medical devices over five years (FY 2022–23 to FY 2026–27). It covers segments such as radiotherapy, imaging devices, anaesthesia, cardio-respiratory and critical care, and implantable devices. Of the 28 approved projects, two are located in Tamil Nadu.
The department of pharmaceuticals is also implementing the Scheme for Promotion of Research and Innovation in Pharma-MedTech (PRIP) with an approved outlay of ₹5,000 crore, valid until FY 2029–30. The scheme aims to strengthen research and innovation across the product lifecycle, from early-stage research to commercialisation.
Seven Centres of Excellence (CoEs) have been established — one at each National Institute of Pharmaceutical Education and Research (NIPER) — to strengthen research infrastructure, accelerate innovation, and enhance industry-academia collaboration. Among them, the CoE at NIPER Hyderabad focuses on bulk drugs.
The PRIP scheme also provides financial assistance to industries, MSMEs, and start-ups for eligible R&D projects, including the development or accelerated validation of new medicines, complex generics, biosimilars, and novel medical devices in identified priority areas. These activities may be undertaken independently or in collaboration with academic institutions and are applicable across states, including Tamil Nadu.
At present, there is no proposal before the Government of India to establish a Bulk Drug Park in Tamil Nadu under the Scheme for Promotion of Bulk Drug Parks.
This information was provided by Union minister of state for chemicals and fertilizers Anupriya Patel in the Lok Sabha.
