Subsequent to a recent visit of board of directors to the Andhra Med Tech Zone (AMTZ) site, Andhra Pradesh health department has formally taken over 226 acres of land to set up Asia's first dedicated medical device park at Visakhapatnam. A seed capital of Rs.25 crore for the land has also been given by the government, according to a source associated with the development.
Andhra Med Tech Zone (AMTZ), a company under government of Andhra Pradesh which has also received approval for funding on 1st June, 2016 from the state cabinet will implement the project of setting up the park.
AMTZ will set up in-house high capital intensive common scientific facilities helping medical device manufacturers reduce the cost of manufacturing in the country.
Over 50 companies have shown interest and 38 companies have submitted Expression of Interest (EOI) letters subsequent to Andhra Pradesh government inviting EOI letters from potential investors.
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.
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.
A dedicated medical devices park would be of immense help in reducing import dependency, increasing export while generating wealth and employment within the country.
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.