KCR’s Pharma City infected by Funds Deficit

Telangana government had planned a mega Pharma City in 11000 acres in Mucherla of Ranga Reddy district. The ground work for this project had began and the Master Plan is being prepared. However severe funds crunch is making the Project not possible according to sources. The state government earlier planned to execute it through funds from various central schemes but the funds flow is not on expected lines.

Of the 11,000 acres proposed for Pharma City, 6,100 acres belong to the forest department, 500 acres is private patta land and another 1,000 acres is government assigned land. The state had to acquire the lands from farmers and pattadars by paying compensation of 7.5 Lakh per acre. Compensation had to be paid to Forest department for forest lands.

The project will run in to several thousands of Crores, with no funds, Telangana government is planning to take advances from interested companies to be paid to TSIIC and use it to fund the project. They would later adjust the money after the final allocation of land to the industries. However this move will be a huge burden for the industries and there is a danger of those companies search for an alternative which would totally defeat the purpose of the Pharma City.