Medical Devices Parks Under DoP Scheme Attract Over INR 13,700 Cr Investment

The scheme, launched with a financial outlay of INR 400 Cr for 2020-21 to 2024-25, aims to enhance infrastructure for medical device manufacturing across the country. 

The four medical device parks being developed under the Department of Pharmaceuticals (DoP) Promotion of Medical Devices Parks scheme have collectively attracted investments exceeding INR 13,776 Cr by the end of July 2024. 

As reported by the Ministry of Chemicals and Fertilizers, this figure, however, excludes investment data for the park in Himachal Pradesh, which remains unavailable.

The scheme, launched with a financial outlay of INR 400 Cr for 2020-21 to 2024-25, aims to enhance infrastructure for medical device manufacturing across the country. 

Despite the large-scale commitments, the Center has released a mere INR 30 Cr for each project. The total funds utilized, including state contributions, amounted to INR 135 Cr by June 2024.

Lags in Investment Data

The Ministry of Chemicals and Fertilisers stated that 16 states initially submitted proposals under the scheme. After a thorough evaluation, projects in Uttar Pradesh, Tamil Nadu, Himachal Pradesh, and Madhya Pradesh were selected. 

Construction activities are underway in all four parks. However, the Ministry has not disclosed the committed investment figures for the Himachal Pradesh project. 

According to Anupriya Patel, Minister of State in the Ministry of Chemicals and Fertilisers, "Construction activities are in progress in all four selected parks. Common facilities at the park would reduce manufacturing costs significantly and create a robust ecosystem for medical device manufacturing in the country." 

Reportedly, Uttar Pradesh has attracted the highest investment commitments among the four parks, totaling INR 8,895 Cr. 

The project has an estimated INR 435.94 Cr, with INR 186.63 Cr allocated for the Common Infrastructure Facility (CIF). The park has utilized INR 46.91 Cr, including the state share, by June 2024.

Center's Financial Contribution Remains Limited

Tamil Nadu's park, which has a total project cost of INR 212.40 Cr and INR 153.33 Cr earmarked for CIF, reported investment commitments of INR 1,495 Cr. By the end of June, the total funds utilized stood at INR 25.97 Cr.

The park has secured INR 3,386 Cr in investment commitments in Madhya Pradesh. The project costs INR 222.77 Cr, with INR 155.63 Cr dedicated to CIF. The park has utilized INR 39.22 Cr, including state contributions.

The park in Himachal Pradesh, estimated at INR 349.83 Cr with INR 157.64 Cr for CIF, utilized INR 23 Cr by June 2024. However, the committed investment data for this park remains undisclosed.

The DoP scheme, launched in July 2020, was designed to provide easy access to standard testing and infrastructure facilities. 

The aim was to create world-class CIFs to enhance competitiveness and reduce the cost of medical device production, thereby improving their availability and affordability in the domestic market.

The Center’s financial support under the scheme is capped at INR 100 Cr per park or 70% of the CIF project cost, whichever is lower. For parks in northeastern and hilly states, this support extends to 90% of the CIF project cost.