Gujarat's Nagalpar Medical Device Park Set to Roll Out by Late 2024

The medical device park is designed to be commercially viable and economically sustainable. There is an expectation of a 100-150 million USD inflow over the next three years, making it a magnet for investors.

The Government of Gujarat is gearing up to launch its medical device park in Nagalpar, near Rajkot. The project, spanning an expansive 250 acres, is on track to be operational by the close of 2024.

In a related development, the Central government has provided a financial grant-in-aid of INR 250 Cr to bolster this initiative to strengthen the state's healthcare infrastructure.

The medical device park has been designed to be a commercially viable and economically sustainable venture. It is poised to become a magnet for investments, with an anticipated influx ranging from 100 to 150 million USD over the next three years.

To ensure the seamless functioning of this medical device park, the state government is also set to contribute additional funds.

Nagalpar, renowned as an engineering hub, has been strategically chosen for this venture, promising an attractive Return on Investment (ROI). 

Dr. H G Koshia, commissioner of the Gujarat Food and Drug Control Administration (FDCA), said the park is a hub for research and development, testing, manufacturing, training, and incubation within the medtech sector for medical device companies.

The Gujarat Industrial Development Corporation (GIDC) is at the forefront of establishing this medical device park in Nagalpar, Rajkot, to promote medical device manufacturing within the state.

This initiative aligns with the Government of India's broader efforts to strengthen domestic drug manufacturing, including bulk drugs and medical devices, to reduce import dependency.

Under the Promotion of Medical Devices Parks scheme, final approval has been granted for financial assistance of INR 100 Cr each to the states of Uttar Pradesh, Tamil Nadu, Madhya Pradesh, and Himachal Pradesh, enabling them to establish common facilities in their Medical Device Parks.

Moreover, under the sub-scheme 'œAssistance to Medical Device Industry for Common Facility Centre," a grant-in-aid of INR 25 Cr has been allocated to Andhra Pradesh Medtech Zone Ltd. (AMTZ) for the establishment of a Common Facility for Superconducting magnetic coil testing and research.

In the same vein, the Production Linked Incentive (PLI) scheme, designed to stimulate domestic manufacturing of medical devices, with a financial outlay of INR. 3,420 Cr spanning from FY 2020-21 to FY 2027-28, offers financial incentives to selected companies. 

These incentives, amounting to 5% of incremental sales of medical devices manufactured in India and covered under the four target segments of the scheme, are set to span five years.