The Hindu Business Line : `Jawahar Pharma City attracting major cos'

Visakhapatnam March 16 Ramky Pharma City (India) Ltd, the developer of the Jawahar Pharma city at Parawada in Visakhapatnam district, has managed to sell almost 70 per cent of the 2,500 acres of land allotted to it and the rest will also be sold soon, as more companies are evincing interest in the project, according to the Chief Executive Officer, Mr P. Eswar Reddy.

Mr Eswar Reddy, who was here on Friday to participate in a function organised in the pharma city by Actus Pharma to mark the inauguration of work on its unit, said that 50 acres of land had been allotted to Biocon for setting up its unit and that company would bring in Rs 400 crore of investment. "Within a month, two or three companies may start work on their projects," he said.

Effluent treatment

To a question whether water supply and common effluent treatment facilities were in place, he said Andhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC) was building a hill reservoir for water supply and there were also plans to build a balancing reservoir.

"The marine outfall is also getting ready. We have already completed the bulk of the work on the pipeline to the Bay of Bengal to carry the treated effluents for marine discharge. From the site to the sea, it will be 15 km or so and pipeline is being laid in the sea for a distance of 1.5 km or so. All the norms will be complied with in treating the chemicals and there will be no problem on the ecological front," he said.

He said green belt was being developed on 380-400 acres of land. "Initially, there was a lot of scepticism about the project. Few companies were willing to invest in it. Now it has changed and the momentum is with us now," he said.

He said Ramky would have to spend roughly Rs 400 crore on developing infrastructure in the pharma city and the park would attract investment of Rs 20,000 crore. The employment potential is estimated at well over 20,000, he said.

He said the Japanese company, Eisai, had been allotted 50 acres and it was expected to invest Rs 700-800 crore in the next five years or so. "They will undertake all activities from basic research to manufacture here. At a later stage, they are planning even clinical trials. Pharma Jell, the German company, had taken 25 acres and it may invest Rs 150-200 crore," he said.

Delay in execution

To a question whether there had been a long delay in the execution of the project, he admitted that there were some hassles, and hurdles, to be surmounted.

"But there is no delay on our part. After the land was handed over to us, free of encumbrances, we have gone to work on it fast. You must appreciate the fact that this is a unique project, the first of its kind in the country, and there are bound to be some teething problems," he explained.

On the controversy over whether the developer should pay development charges to the Visakhapatnam Urban Development Authority (VUDA), he expressed the view that the VUDA should waive development charges. "We were promised many such incentives by the State Government. But in practice they elude us. I think the charges should be waived. We are expecting the layout approval from the VUDA within a week or so. There should be no problem on the score," he said.

He said Ramky was also contemplating setting up of a captive power plant for the park, if the State Government was willing to give more land. "We are contemplating a 75-MW power plant, either thermal or gas-based, and we need 150 acres more for the purpose," he added.

To a final question when the pharma city will become fully operational, he said it may take two or two-and-a-half years more.

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