Centre asks Himachal, Gujarat and Andhra Pradesh to send detailed project reports on bulk drug parks

Tribune News Service

Ravi S Singh

New Delhi, September 3

In order to increase the mass production of medicines in the country and emerge as an export powerhouse, the Centre has asked the Himachal Pradesh, Gujarat and Andhra Pradesh governments to submit detailed project reports on bulk drug parks by November-end.

It has given in-principle approval to proposals from these states. The Centre is also taking the follow-up measures under the supervision of Union Minister for Chemicals and Fertilisers Mansukh Mandaviya.

Any headway on these proposed parks will be subject to scrutiny and assessment and their conformity to prescribed norms.

The projects will be set up under a central scheme for ‘Promotion of Bulk Drug Parks’, a focused initiative to jack up manufacturing of bulk drugs in the country. 

It is a move towards making the country ‘atmanirbhar’ in bulk drugs, especially after the bitter experience of the global health emergency caused by covid-19, and the subsequent gripping uncertainties of geo-politics which disrupt supply chain.

The scheme with a financial outlay of Rs 3,000 crore provides for financial assistance to the three states for establishing bulk drug parks.

Maximum assistance under the scheme for one of these parks will be limited to Rs 1,000 crore.

The three states have long been pitching for speedy approval of their proposals.

Himachal Chief Minister Jai Ram Thakur had raised the matter with Mandaviya at their meeting. Sources said the Himachal government had repeatedly corresponded with the Department of Pharmaceuticals at the Centre.

The state's refrain with the Centre has been that the bulk drug park would help the state emerge as India's pharma hub, which would also help it emerge as a major health tourism destination and create job opportunities.

Under the scheme, Himachal, being a hilly state, financial assistance from the Centre would be 90% of the project cost. The assistance for the park in Gujarat and Andhra Pradesh would be 70% of the project cost.

Himachal has decided to set up the park for bulk drugs on 1,402 acres of land at Haroli tehsil in Una district. Gujarat proposes to set it up on 2,015 acres of land at Jambusar tehsil in Bharuch district, and Andhra Pradesh on 2,000 acres at KP Puram and Kodhada of Thondagi Mandal of East Godavari district. 

The Indian pharmaceutical industry is the third largest in the world by volume, but the Centre has made a push for more returns, including of making the country a major exporter of medicines.

India exported pharmaceuticals, including bulk drugs/drug intermediates, worth Rs 1,75,040 crore in 2021-22. It is one of the major producers of Active Pharma Ingredients (API) or bulk drugs in the world. India exported bulk drugs/drug intermediates worth Rs 33,320 crore in 2021-22.

However, the country also imports various bulk drugs/APIs for producing medicines. Most of the imports of the bulk drugs/APIs are because of economic considerations.

The bulk drug parks to be developed under the scheme will provide common infrastructure facilities at one place thereby creating a robust ecosystem for the bulk drug-manufacturing in the country and also significantly reducing the manufacturing cost.

Highlights

*The central scheme aims to bring down the cost of manufacturing of bulk drugs and increase the competitiveness of the domestic bulk drugs industry.

*These parks are aimed at providing common infrastructure facilities at one place, thereby creating a robust ecosystem for the bulk drug-manufacturing in the country.

*The scheme’s objective is to encourage domestic-manufacturing of bulk drugs to reduce import-dependence and to establish a dominant position in the global market by providing easy access to standard-testing and infrastructure facilities.

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