India’s Scheme for Promotion of Bulk Drug Parks aims to reduce the cost of manufacturing bulk drugs by creating world-class common infrastructure facilities. Approved by the Union Cabinet on 20 March 2020, the scheme supports the development of three bulk drug parks across the country and seeks to strengthen domestic pharmaceutical manufacturing through economies of scale.
Objective of the Scheme
The scheme is designed to improve the competitiveness of India’s bulk drug sector. Bulk drugs, also called active pharmaceutical ingredients, are the main raw materials used in medicines. By sharing core infrastructure, manufacturers can lower production costs and improve efficiency.
Financial Support and Duration
The scheme has an outlay of ₹3,000 crore for the period FY 2020-21 to FY 2026-27. Central assistance is capped at ₹1,000 crore per park or 70% of the project cost of common infrastructure facilities, whichever is lower. For North-eastern States and hilly States, the assistance can go up to 90% of the project cost.
Common Infrastructure Facilities
The scheme provides support for facilities such as:
- Central effluent treatment plants.
- Solid waste management systems.
- Common solvent storage and recovery units.
- Warehouses and dedicated power substations.
- Raw, potable and demineralised water systems.
- Steam generation and cooling networks.
- Advanced laboratory testing centres.
- Emergency response and safety audit centres.
Approved Bulk Drug Parks
The Department received proposals from 13 States. After evaluation, bulk drug parks in Gujarat, Himachal Pradesh and Andhra Pradesh were approved. Each park received a grant-in-aid of ₹1,000 crore. The initiative is expected to support domestic production, reduce import dependence and improve supply chain resilience in the pharmaceutical sector.
Last Modified: April 27, 2026