The previous plan involved creating a massive pharmaceutical manufacturing cluster spanning 20,000 acres in Yacharam, Rangareddy district. However, environmental advocacy groups highlighted risks related to pollution, biodiversity loss, and strain on local resources, fueling protests that gathered momentum over the past months. Responding to these pressures, the state has now opted for smaller, distributed pharma villages of 500–1,000 acres each, strategically located along highways and near existing transportation networks to ensure accessibility and efficiency.
This shift aligns with broader goals of fostering balanced regional development while reducing the potential for localized environmental damage. The government envisions these pharma hubs as integrated townships that incorporate essential infrastructure, including schools, medical facilities, and residential areas, to support the workforce and surrounding communities.
In announcing the revised plan, Chief Minister Reddy criticized his predecessor's approach, calling it economically unviable and comparing it to past projects that had strained state finances. He cited the controversial Kaleshwaram irrigation project as a cautionary example, describing the importance of ensuring public projects yield sustainable and equitable benefits. The new model, according to the Chief Minister, aims to avoid these pitfalls while fostering economic growth and enhancing the state's competitive position in the pharmaceutical sector.
Environmental concerns played a pivotal role in the decision-making process. Critics of the original project warned of the potential for large-scale air and water contamination in areas surrounding the proposed site, which include sensitive ecological zones. Activists welcomed the revised plan as a step toward mitigating these risks, though they remain cautious about the execution of the smaller hubs.
The government’s announcement also outlined a significant shift in focus toward developing a textile corridor to boost employment and economic activity. Officials noted that this diversification aims to complement existing industrial clusters while leveraging the state's strong labor force and infrastructure.
Economic analysts have observed that Telangana's pharmaceutical sector holds immense potential as a manufacturing hub for both domestic and international markets. However, the success of the decentralized approach will depend on meticulous planning and coordination to avoid replicating challenges associated with pollution, regulatory compliance, and infrastructure development.
While opposition parties have voiced skepticism, questioning whether the decentralized model can attract sufficient investment without the economies of scale offered by the original Pharma City plan, state officials maintain that the smaller, focused hubs will cater to niche market demands and provide greater flexibility.