Investors in India’s first dedicated medical devices manufacturing park coming up at Nadupuru village near Visakhapatnam Steel Plant have been promised up to one acre of land each with 80 per cent built-up area.

As of now, officials said, they had acquired over 200 acres with a promise to increase the area once the demand for land goes up. Andhra Med Tech Zone, a company floated in June to implement the project, will be charging a non-refundable amount of Rs. 99 lakh from the allottees for developing the area.

The rent has been fixed tentatively at Rs. 1.5 lakh per annum.

For MSME units, the Ministry of MSME will offer a 25 per cent capital subsidy. There is no clarity as of now on tax and other incentives.

However, the land allotment will be for 30 years.

The park will have separate blocks for scientific labs, office showrooms for product display, manufacturing units and a wide array of common facilities such as electromagnetic testing centre, component testing unit, 3D designing and printing, sterilisation and toxicity and radiation testing centres besides warehousing.

The park will also have space for the office of regulator and other common facilities. Some area will be earmarked for innovation and incubation of start-ups as per the detailed project report.

While welcoming the initiative, local entrepreneurs involved in healthcare sector feel that there is no policy in place on medical devices manufacturing. Before finalising the guidelines and incentives, local entrepreneurs and trade bodies should be taken into confidence, a hospital administrator said.

Some of the entrepreneurs feel that Visakhapatnam needs to have a market place for electronic devices and the park should not be developed as a standalone hardware manufacturing complex. According to industry sources, the Indian medical devices sector is estimated at Rs. 60,000 crore of which products worth Rs. 23,000 crore are imported and Rs. 7,000 crore exported.

“Once the park becomes a reality, it will not only generate huge employment and revenue, but also will convert Visakhapatnam into a hub for medical devices manufacturing,” said AMTZ CEO Jitendra Sharma.

The government has already received expression of interest from over 40 prominent investors. At least 200 units are expected. Chief Minister N. Chandrababu Naidu at an investors’ meet recently said his dream was to attract 200 to 300 units with an investment of Rs. 25,000 crore to provide employment for 25,000 and drastically bring down the cost of healthcare.

Source: The Hindu