UP govt woos pharma cos, private healthcare firms with mega parks, public private partnership model

On November 6 2018, Uttar Pradesh Chief Minister Yogi Adityanath announced that Faizabad district would henceforth be known as Ayodhya.

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Viswanath Pilla
Moneycontrol News

The Uttar Pradesh government is planning six mega pharmaceutical manufacturing parks, state health minister Sidharth Nath Singh told Moneycontrol on the sidelines of a public function in Mumbai.  The state has received an investment commitment of about Rs 5,000-6,000 crore from domestic and multinational pharma companies, Singh said.

The government is in talks with several multinational companies like Mylan, Pfizer along with other domestic players for setting up pharma units in the state.

Singh said the parks will be coming up at Jhansi, Bundelkhand, Ghaziabad, Lucknow, Allahabad and Gorakhpur. Each park will be of 100-250 acres, Singh said the land is available as per need basis.

To attract pharma companies, the UP government is offering sops on stamp duty, on electricity duty, on GST and concessional loans for developing enabling infrastructure. The government is also promising contribution to employee provident fund (EPF) for units employing more than 200 people.

"We are looking at holistic development of the state, and no body can match us with the incentives we are providing," Singh said.

UP contributes about 20-30 percent of Indian pharma exports, but these are through small clusters, but this is the first time we are planning mega parks of this scale, Singh added.

New hospitals in PPP mode

Singh said his government will be setting up 150 multi-specialty hospitals across the state under public private partnership (PPP) mode. The model tender document is getting prepared and all the big players have evinced interest and discussions are on.

"Because of Ayushman Bharat people are willing to come to tier-2 and 3 towns to invest," Singh said.

"The goverment owns the land, the private party will build the infrastructure, bring doctors, set up out-patient departments. The government will pay through OPD and Ayushman Bharat for poor patients beyond that, the private partner will be allowed to charge remaining patients to recover costs and sustain operations," Singh said.

To improve overall quality standards of hospitals in UP, Singh said his government is investing and preparing 45 district hospitals for NABH accreditation with the help of World Bank funding.

"All my 51 district hospitals, will look better than hospitals of Apollo and Max, we took it as a challenge," Singh said.

Singh said UP government is now focused on prevention by training and empowering health workers to reach the last mile.

“We faced a lot of negative publicity last year in Gorakhpur with Japanese enchaphalities (JE) and Acute Encephalitis Syndrome (AES). This time we trained 74,000 health workers and along with UNICEF we went to 66 lakh houses in districts where AES and JE are prone, and we informed the family, children and school so as tell them what to do. We ran an immunization program of 93 lakh people for JE,” Singh said.