Karnataka plans pharma, medical instrumentation clusters | SupportBiz


Karnataka plans pharma, medical instrumentation clusters

The southern Karnataka state, a prominent information technology hub in India, plans to develop industrial zones for companies in the pharmaceutical and medical instrumentation businesses, according to a government advertisement published in a leading newspaper.

The state has identified land in northern Karnataka for the same, the advertisement said.

Each industrial zone will be spread over 500 acres and both, the pharmaceutical and medical instrumentation zones, will be located in-an-around the Yadgir town, the advertisement said.

The government has invited expressions of interest (EOI) from potential consultancies interested in being appointed as ‘transaction advisor’ to the project. EOIs need to be submitted to the Karnataka Industrial Areas Development Board (KIADB) by September 20, 2012. KIADB is the state's industrial infrastructure development agency.

The two zones will be developed on a public-private partnership (PPP) basis, the government advertisement noted.

The transaction advisor is the chief consultant to any project, said a government official working with the Technical Consultancy Services Organisation of Karnataka (TECSOK), a state government agency.

The transaction advisor is entrusted with the task of drawing up a project feasibility report, with two to three options, to start with, the official said requesting anonymity. After the project’s viability has been established, the transaction advisor prepares documents pertaining to the official bid; and facilitates the bidding process and in zeroing-in on selecting the company that  develops the project ground up, the official said.

Several discussions, some around the time of the recent Karnataka Global Investors Meet (GIM), 2012, pointed out the potential for pharma and medical instrumentation cluster development in the state, the official said. The government, in some discussions, noted that the neighboring Andhra Pradesh state, and the western Gujarat state have reaped huge benefits -- in terms of inward investments and generating employment opportunities -- from developing similar clusters, the official said.