The Hindu Business Line : AP pharma body seeks land for SMEs in Ongole

Drugs and Pharmaceuticals Manufacturers Association (DPMA) has requested the State Government to allocate 1,000 acres of land near Ongole for setting up of small and medium enterprises exclusively.

A delegation led by the DPMA Chairman, Mr A. Venkata Reddy, met Ms Geetha Reddy, Minister for Major Industries, Government of Andhra Pradesh, here on Tuesday and submitted a representation for allocation of land through the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).

The DPMA would constitute a Special Purpose Vehicle for creating world-class infrastructure facilities and the member industries were ready to contribute the total cost of project, the DPMA said in its representation.

In view of the “unaffordable” land prices in and around Hyderabad, the SMEs were not in a position to set up new manufacturing units.

Though the State Government developed Pharma City in Visakhapatnam with a private developer Ramky Group, the situation was not conducive for the SMEs, according to DPMA.

“Around 450 acres of land was allotted to the major bulk drug industries two years ago at Rs 16 lakh per acre.

Surprisingly, today, the developer is quoting Rs 75 lakh to Rs 100 lakh per acre. Further, Ramky is conveying orally that the land is fully occupied. Hence, the land in Pharma City is beyond the reach of SMEs,” the representation said.

The association had also brought to the notice of the State Government that Karnataka and Maharashtra were inviting SMEs from the State by offering land at Rs 4 lakh per acre with all basic infrastructure. “Already few companies from our State have moved to Sholapur and Raichur,” it said.

The available land in the Ongole district would help the industry as it was close to the national highway and the Chennai port.

It would also boost employment generation in the predominantly rural district, it pointed out.

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