Telangana scraps ambitious pharma city project, plans to build 10 pharma villages

The Congress-led government in Telangana on Tuesday announced its decision to abandon the ambitious Hyderabad Pharma City project, initially proposed by the Bharat Rashtra Samithi (BRS) regime.

Instead, the government has a new directive of building 10 'Pharma Villages' across the state - with Vikarabad, Medak and Nalgonda slated to be the first locations for these villages. The previous Pharma City project aimed to cover a vast 10,000-acre area and was projected to expand further over time, making it the largest pharma manufacturing cluster.

Industries and IT Minister, D. Sridhar Babu, cited multiple challenges behind the decision to shelve the Pharma City project hindering its progress. The project had struggled with arguments over its environmental impact, conflicts from farmers, and various legal issues concerning land procurement, he said, addressing the media on the sidelines of BioAsia 2024 - the 21st edition of the life sciences industry event held in Hyderabad.

The minister stated that while the state government has yet to decide on the future use of the Pharma City land, it remains open to exploring alternative options. Furthermore, the government said that it will make investments ranging from Rs 22,000 crore to Rs 30,000 crore over the next five years for the expansion of the second phase of Genome Valley, including an additional 300 acres.

Chief Minister of Telangana Revanth Reddy said that his government is now undertaking the expansion of Genome Valley across 300 acres of land. "Furthermore, we are launching multiple pharma villages with investment of Rs 1 lakh crore," he said. 

The minister explained the shift in the government's strategic plan. He emphasized the government's commitment to inclusive state development, with each pharma village spanning between 1,000 and 2,000 acres. These villages will house a range of facilities, including manufacturing units, research, and development centres.

Regarding the land initially allocated for the Pharma City project, Babu said that the government will come out with a democratic solution that would see the land put to productive use. He also noted that land was accessible for the upcoming pharma villages.

Additionally, the minister revealed plans for the imminent launch of new policies focused on life sciences and micro, small, and medium enterprises (MSMEs), aimed at promoting the growth of small industrial units and boosting employment opportunities within the state.

To further support the revamped strategy, he said that the government plans to launch a new Life Sciences policy and an MSME policy to harmonize evolving technologies. While total restructuring of the existing TS-iPASS policy for industrial project clearances is not seen as urgent, alterations will be made to provide clarity amidst the current confusion.