Telangana government’s proposed Pharma City in 12500 acres on the outskirts of Hyderabad may be executed by private investors. The government has formed a Special Purpose Vehicle (SPV) as a private limited company against the earlier proposal of a public-private partnership.
The government which is in a severe financial crisis is keen on mobilising the financial resources from private investors. The government will restrict itself in acquiring the land by paying compensation to owners. The funds to develop infrastructure for the project will be executed by private investors.
The center had recently accorded National Investment and Manufacturing Zone status to the Pharma City in January this year. But then it is in doubt now due to Private partnership. NIMZ status is subject to the condition that the state government forms the SPV as envisaged in the National Manufacturing Policy.
