The government on Wednesday approved the set up of India's first medical devices manufacturing park.
Giving a push to local production of hi-end medical equipment, the government on Wednesday gave its nod to HLL Lifecare to sub-lease over 300 acres of land in Chennai to set up the country's first medical devices manufacturing park.
The Union Cabinet chaired by Prime Minister Narendra Modi gave its nod to the Public Sector Undertaking (PSU) under the Health Ministry to sub-lease 330.10 acres of land at Chengalpattu near Chennai to set up the Medipark through a Special Purpose Vehicle (SPV) with shareholding of HLL at 50 percent.
"The Medipark project will be the first manufacturing cluster in the medical technology sector in the country, envisaged to boost local manufacturing of hi-end products at a significantly lower cost, resulting in affordable healthcare delivery, particular in diagnostic services to a large section of people," an official statement said.
The proposed Medipark would contribute to development of medical devices and technology sector and allied disciplines in the country, which is still at a nascent stage besides generating employment and give a boost to the government's "Make in India" campaign.
The medipark will be developed in phases, spread over seven years for completion and in the first phase, physical infrastructure will be developed while the plots will be leased from the third year onwards.
Knowledge management center will be developed in the second phase. HLL will sublease the land to investors, through a transparent bidding process to investors desirous to set up manufacturing units for medical equipment and devices.
"In the initial phase, the land cost to the qualifying entrepreneurs from medical device and equipment, manufacturing industry will be at a subsidised rate to attract others and the rate will go up gradually as the demand picks up."
"Thus the Medipark project will play an important role in enhancing quality health care delivery in India," the statement said.
The project will also reduce the dependence on imports and create a strong base for the growth of indigenous and domestic industry by providing access to state-of-the-art infrastructure and technology.
The domestic manufacturing of medical devices and equipment will not only usher in a regime of assured and affordable health care delivery but also deepen and strengthen the penetration of quality health care services.