Tamil Nadu mulls new pharma policy to attract investments

Tamil Nadu, which has been losing out to neighbouring states in its position among the major pharma manufacturing hubs, is expected to launch a new pharmaceutical manufacturing policy to attract the industry.

This is at a time when the Goods and Services Tax (GST) implementation has almost removed the additional benefits tax haven states like Himachal Pradesh have been offering manufacturers.

“We would like the pharmaceutical industry in the state to come up with suggestions so that we can attract more pharma industry to the state. We can come up with a Pharmaceutical Industry Policy, based on the industry submission,” said Mr. K. Gnanadesikan, Additional Chief Secretary to Government, Industries Department, Tamil Nadu. He was addressing industry representatives in Pharmac South, an industry meeting organised by Indian Drug Manufacturers Association (IDMA) in Chennai. He urged the association leaders to communicate the state’s proposal with the larger pharmaceutical companies, informing that the projects over Rs. 3-bn could be provided with special incentive package, as is offered for industries including automotives. For the small and medium manufacturers, the option could be to form a group to seek land with the government.

The industry representatives said that this was a welcome move and could help the state inch up its position among pharma manufacturing destinations. The state now trails Gujarat, Maharashtra, Andhra Pradesh and Karnataka among leading pharma production centres.