Divi's Laboratories has received environment clearance for modernisation of its bulk drug unit in Visakhapatnam which will entail a cost of Rs 100 crore.

The company wants to modernise one of the two units by shifting non-production activities to proposed new area and meet all modern production facility compliances for achieving export targets.

The proposal was first vetted by an expert panel and based on its recommendations; the Union Environment Ministry last week gave the final environment clearance (EC) to Divi's Laboratories for the modernisation project.

The approval is subject to compliance of specific and general conditions, said the EC letter issued to the company has reviewed the copy of the EC letter.

The company has informed that the proposed project is estimated to cost about Rs 100 crore and will generate employment for nearly 8,000 people.

At present, the company has a land area of 387 acres. Additional 108.59 acres land will be used for the proposed modernisation, which will be carried out in two phases.

The phase-I works would include construction of production blocks and ancillary works, while the phase-II would focus on production-related utilities and other activities.

Among conditions specified, the company has been asked to develop a green belt in 33 per cent of the area, plant 1,000 trees a year for five years and install an online monitoring system for measuring pollutants within the treatment unit.

During the proposed modernization, the company said that there will not be any change in production capacity, number of products, water consumption, wastewater generation and pollution loads.

Currently, Divi's Laboratories has two manufacturing facilities, one each in Nalgonda and Visakhapatnam districts.

Both facilities are primarily engaged in the manufacturing of Active Pharmaceutical Ingredients (APIs), custom synthesis of API and advanced intermediates for discovery compounds for big pharma companies.