AP govt approves funding for Asia’s first medical device park at VisakhapatnamPublish Date : Jun 03, 2016
Andhra Med Tech Zone (AMTZ), a company established under government of Andhra Pradesh has finally received approval for funding by the state cabinet on 1st June, 2016 for setting up Asia’s first dedicated medical device park at Visakhapatnam in Andhra Pradesh.
A dedicated medical devices park would be of immense help in reducing import dependency, increasing export while generating wealth and employment within the country.
AMTZ which got formal registration recently towards making India a global medical device manufacturing hub is proposed to have in-house high investment scientific facilities in an area of 226 acres helping medical device manufacturers reduce the cost of manufacturing.
Andhra Pradesh Government has also issued appointment orders for Dr Jitendar Sharma, head of health technology department at National Health Systems Resource Centre (NHSRC) under the Union Health Ministry and Advisor – Health and Medical Technology to Government of Andhra Pradesh to be the chief executive officer for the AMTZ project. AMTZ is the brainchild of Dr Sharma who has also been associated with implementation of several health technology intensive projects in the country and is known in technology circles as the Med Tech Man of India.
The medical device park is proposed to have all such facilities in-house that are required for specialized product verticals to reduce manufacturing process costs. The park will provide modern state of art common facilities such as specialised laboratories, warehousing, testing centre apart from 100 to 150 independent manufacturing units, each in a built-in ready to use area of 0.5 to 1 acre each.
Established subsequent to announcement made by the Andhra Pradesh Chief Minister Chandrababu Naidu after a series of consultations with Indian medical device manufacturing industry, AMTZ aims to flourish as a hub of medical device manufacturing putting India on the global map of high end medical equipment production and make health care products affordable and accessible.
The creation of manufacturing park for medical devices is the need of the hour as medical devices manufacturing requires certain high investment facilities which are too capital intensive for individual manufacturers to invest upon. A park with in-house high investment scientific facilities would help manufacturers reduce the cost of manufacturing by more than 40 per cent to 50 per cent.
Currently, due to lack of such centrally located common facilities, manufacturers do not undertake production of technologies and therefore send their products abroad for process upgradation and value addition.
It will help facilitate to create an ecosystem for manufacturing of high end medical device manufacturing aimed at import substitution and export opportunities and would be a major boost to SMEs.
Indian medical device industry is worth over Rs.60,000 crore and country’s import bill for this segment amounts to over Rs.23,000 crore while export amounts to only over Rs.7,000 crore. India’s import dependency on high-end medical devices is over 80 per cent and 60 per cent to 70 per cent for other devices.