HYDERABAD: Industries Minister KT Rama Rao on Sunday dashed off letters to the Centre to extend financial assistance of Rs 3,418 crore for creation of a full-fledged Hyderabad Pharma City, besides allotment of natural gas on a preferential tariff basis for use as fuel by pharma units, instead of pollution-causing coal.
The minister, recalling that Pharma City has been recognised as a National Investment Manufacturing Zone (NIMZ), urged the Central government to extend financial assistance in accordance with the guidelines of the NIMZ policy.
The minister, in his letter to Union Industries Minister Piyush Goyal, wanted the assistance given in the form of an outright grant, while in the other letter, to Petroleum Minister Dharmendra Pradhan, he sought allotment of natural gas to the Pharma City on a preferential tariff basis.
The minister reminded the Central government that Hyderabad Pharma City would be the largest integrated pharma city in the world and would greatly help in the growth of the pharma sector in the country.
He added that there was a very encouraging response from domestic and global pharma companies to the Hyderabad Pharma City in the wake of the Centre recognising it as a NIMZ.
Investments are likely to flow in substantially, KTR said and pointed out that it would remain a source of inspiration for the industry sector in the country in carrying forward the Make in India campaign.
It would have an international pharma university, a logistics park, pharma training and testing laboratories, a common drug development centre, and a hub for encouraging start-ups in the pharma sector, KTR said.
He added that the master plan is ready for an area of 19,333 acres, and for the first phase, which will come upon 8,400 acres, detailed designs have been finalised.
The Centre has already accorded environmental clearances. The Telangana government has begun work by forming a special purpose vehicle. Pharma City is expected to land investments worth Rs 64,000 crore and create about 5.6 lakh jobs, both directly and indirectly.
The minister sought a grant-in-aid of Rs 1,318 crore for creation of infrastructure, besides Rs 2,100 crore, which would be half the expenditure to be incurred for creation of internal infrastructure facilities and a common effluent treatment plant.
In his letter to Dharmendra Pradhan, he said that at present, pharma companies were using coal as fuel, but natural gas would be required for Hyderabad Pharma City since it was being developed in accordance with the green industrial concept.
As natural gas is expensive, the Centre should supply it to the state at a lower price since it is meant for giving a fillip to the pharma sector, he said, adding that the units in Pharma City would need 3.4 million metric standard cubic metres per day (MMSCMD).
‘Eco-friendly will have zero liquid discharge’
In his letter to Piyush Goyal, KT Rama Rao said Pharma City would be environment-friendly as there would be zero liquid discharge and it would meet international standards in combating pollution. The master plan for the project is ready for an area of 19,333 acres, he added