The Indian government is close to rubber-stamping an $80bn industrial hub near Vishakhapatnam (Vizag) which is expected to attract pharmaceutical companies to the region. A consortium of Mittal Energy Investments, Total SA and Petroleum Corp will be the anchor tenant at the mega oil, chemical and petrochemical hub following its $7.5bn investment.
Surrounding this will be numerous pharmaceutical and chemical manufacturing facilities, spread over the 603 sq km site.
The sheer scale of the site and the investment should ensure that it becomes a focal point for pharmaceutical activity within India. At this time it is unclear which pharmaceutical companies will be setting up in the region.
The operating in India the hub at Vizag should prove alluring to pharmaceutical companies owing to its scale plus the surrounding geography, culture and infrastructure.
Companies operating in the hub will be looking to utilise the large number of highly educated, English speaking graduates from the region’s educational establishments.
It is this workforce which has driven the rapid growth of Vizag from a small fishing village during colonial times to the industrial monolith it is today.
This industrial expansion has been supported by improvements in the region’s infrastructure.
Consequently, the hub will have excellent links by air, which have undergone rapid improvement in recent years. This has resulted in increased capacity for international airlines and permission for night flights. The city is also well connected to the rest of India by air and rail.
This should facilitate the movement of people to the hub, as well as the transport of goods to market. Vizag’s natural harbour will also play a vital role in dealing with exports, which are anticipated to be $13.6bn per annum.
Infrastructure at the hub itself is to be developed through significant governmental funding, with central government pumping in $1.2bn and the state, Andhra Pradesh, supplying $500m.
The sums of money involved signify the commitment of the Indian government to see the nation build on the impressive growth it has achieved in recent years.