The pharma companies in Telangana are apparently contemplating relocating to Uttar Pradesh as the Hyderabad Pharma City project in the state has been put on hold by the Congress Government. The Uttar Pradesh (UP) government is actively wooing major pharma companies in the state to shift their bases to a special industrial corridor in Lalitpur, UP.
The UP government has developed a special industrial corridor for pharma and life sciences companies and is also offering special incentives to attract investments. In this regard, a high-level delegation from UP has met with representatives of major pharma and life sciences companies in Hyderabad. More than 70 companies, including the Bulk Drug Manufacturing Association, and the Indian Drug Manufacturers Association, participated in the meeting.
As the Revanth Reddy government has scrapped the Pharma City project, pharma companies are now exploring options in other states since Telangana lacks a designated ‘red industrial area’. The previous BRS government, through the Pharma City project, had planned to construct a Common Effluent Treatment Plant and had pooled around 13,000 acres of land for the project. The proposed Pharma City project had initially attracted investments from top pharma companies in Telangana and now these companies are reconsidering their decision.
The UP government has seized this opportunity and is rolling out the red carpet for Telangana pharma companies. Furthermore, the union government’s support, the availability of land at a cheap price, and the UP government’s special incentives are driving pharma investments away from Telangana.