Country’s first state-of-the-art Medipark to come in Chengalpattu

The 7-year project of HLL Lifecare, a public sector undertaking under the Health and Family Welfare ministry, will come up on an area of 330.10 acres. A special purpose vehicle will be used to set up the medical devices manufacturing park (Medipark). HLL will hold the majority stake in in the project. 

The Medipark project is envisaged to boost local manufacturing capability of hi-end products at a significantly lower cost, resulting in affordable healthcare delivery, particularly in diagnostic services, to a large section of people. The proposed Medipark would contribute to the development of medical devices and technology sector and allied disciplines in the country, according to an official press release. Besides generating employment, this is aimed at steering the government’s “Make in India” campaign in the envisioned direction.

Medipark will be developed in phases, over seven years. Initially, the physical infrastructure will be developed and plots will be leased from third year onwards. Knowledge management centre will be undertaken in the second phase, with grants and assistance from departments, which funds similar initiatives. HLL will sublease the land to investors, through a transparent bidding process to investors desirous of setting up manufacturing units for medical equipment and devices. In the initial phase, the land cost to the qualifying entrepreneurs from the medical device and equipment manufacturing industry will be at a subsidised rate to attract others. The rate will go up gradually as demand picks up. Thus, it will play a vital role in delivering quality health care. The project will reduce dependence on imports and create a strong base for the growth of the domestic industry by providing access to state of the art infrastructure and technology. The domestic manufacturing facility of medical devices and equipment shall 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, according to the release. 

“Given the current import duty structure, medical equipment will become costlier. TN leads other states – Andhra Pradesh, Karnataka and Gujarat in this field. But, there is a strong possibility that TN will lose its sheen as AP is bound to dislodge it to become the topmost destination in this regard,” notes Dr S Manivannan, Joint MD, Kauvery Hospital, while welcoming the latest move of the government to house the Medipark in the silk-town of TN. 

Further, when it comes to local manufacturers, Trivitron, steered by young entrepreneur G S K Velu from Chennai, is the only significant player in this space. Such a foray has been possible owing to tie-ups with global brands.

Typically, to get into top-end medical equipment business, an investment to the tune of Rs 100 to Rs 200 crore is needed, observed Dr Manivannan.