Bulk Drug Park

By : Neha Dhyani

Updated : Apr 11, 2022, 12:59

This article will cover the vast impact of the Bulk Drug Park and understand its meaning, how it gets prepared, the reason for promoting this scheme for India, Bulk Drug Policy and how Bulk Drug Parks will be selected (criteria). This will help UPSC aspirants and help people at large understand this great step of the Indian government.

What Is a Bulk Drug?

The bulk drug is a key ingredient of any medicine or drug, called an Active Pharmaceutical Ingredient (API). It lends a drug or medicine a desired therapeutic effect or produces the intended pharmacological activities, e.g. Paracetamol.

It acts against pain, mixed with binding agents to prepare the finished pharmaceutical products, i.e. Paracetamol tablets and capsules

How Does It Get Prepared?

  • APIs are prepared from multiple reactions involving chemicals and substances.
  • When basic raw materials undergo reactions to form an API, the Key Starting Material (KSM) is called.
  • Those chemical compounds formed during the intermediate stage are known as Drug Intermediaries (DIs).

Why India Is Promoting Bulk Drug Parks?

  • A Bulk Drug Park is a contiguous area where there will be common infrastructure facilities to produce APIs and KSMs DIs.
  • Despite having one of the largest Pharmaceutical Industries globally, India still depends on China (almost 90% of total imports) for importing APIs, KSMs DIs.
  • During the pandemic, China increased the price of APIs, making it costly for India due to its heavy dependency on China for drugs. If India promotes Bulk Drug Parks, it will give greater self-reliance to the domestic pharma industry.
  • it will help the industry meet the standards of the environment at a reduced cost through innovative methods of a common waste management system.
  • Border conflict is another unavoidable reason that inspires India to promote Bulk Drug Parks.
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Bulk Drug Policy in India

  • The department of pharmaceuticals announced a scheme to promote three Bulk Drug Parks in the country, intending to bring down the manufacturing cost of bulk drugs in India and increase competitiveness in the domestic industry.
  • it will also support three selected parks in the country by providing a one-time grant-in-aid to create a common infrastructure facility.
  • The centre will provide a maximum of INR 1000 cr for a park.
  • Over 90% of the cost as a grant will be given to the North Eastern States and the Hill States, i.e. Himachal Pradesh, Jammu Kashmir Uttarakhand, etc. At the same time, 70% of the cost of a grant will be for others.
  • The total financial outlay will be INR 3000 crores for 2020-2025.

How Will These 3 Parks Be Selected?

  • States like Andhra Pradesh, Maharashtra, Gujarat, Haryana, Punjab, Tamilnadu Telangana, etc., have shown their interest in this project. As per policy, the state can apply for one park.
  • For States expect hill land area should not be less than 1000 acres. At the same time, it should not be less than 700 acres for hill areas.
  • The application should be given by States attaching estimated cost, feasibility study, and environmental risk assessment.
  • The state government will identify a suitable place for establishing a Bulk Drug Park that should be well away from the eco-sensitive zone of protected areas.
  • The Project Management Agency nominated by the department will examine the proposals of states and will make a recommendation to a Scheme Steering Committee for further approval of the proposal.
  • The project shall be completed within two years from the date of release of the first instalment of the grant-in-aid unless the SSC extends it.
  • Grant-in-aid will be released in four instalments.


Percentage of fund










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FAQs on Bulk Drug Park

Q.1. Which state has recently applied for permission from the Central government for Bulk Drug Park construction in its state?

The state that applied for the central government's permission for Bulk Drug Park construction is Karnataka.

Q.2. How many Bulk Drug Parks are there in India?

Three Bulk Drug Parks would be set up in India as per the announcement by the Central Government.

Q.3. In the context of Bulk Drug Parks, how many acres should the land be to be eligible for selection for hilly areas?

In the context of Bulk Drug Parks, the land should be 700 acres for Hilly areas to be eligible for selection.

Q.4. In how many instalments would the grant-in-aid for a Bulk Drug Park be released?

The grant-in-aid for a Bulk Drug Park would be released in four instalments.