A bulk drug park will have a designated contiguous area of land with common infrastructure facilities for the exclusive manufacture of APIs (Active Pharmaceutical Ingredients) and also a common waste management system. These parks are expected to bring down manufacturing costs of bulk drugs in the country and increase competitiveness in the domestic bulk drug industry. Himachal already has Asia’s largest pharma manufacturing hub , that is the Baddi-Barotiwala-Nalagarh industrial belt, and the state produces around half of India’s total drug formulations. Government Of India announced to Open its first drug park in Himachal Pradesh . Hence Option 1 is Correct . The Centre’s scheme will support three selected parks in the country by providing a one-time grant-in-aid for the creation of common infrastructure facilities . The grant-in-aid will be 70 per cent of the cost of the common facilities but in the case of Himachal Pradesh and other hill states, it will be 90 per cent. The Centre will provide a maximum of Rs 1,000 crore per park. A state can only propose one site, which is not less than a thousand acres in area, or not less than 700 acres in the case of hill states . India has one of the largest pharmaceutical industries in the world (third-largest by volume) but this industry largely depends on other countries, particularly China .