Govt mulls policy to encourage manufacturing in bulk drugs sector

The Dollar Business Bureau In a move to reduce India’s dependence on imports for bulk drugs and Active Pharmaceutical Ingredient (APIs), the government is making all out efforts to boost the manufacturing in the bulk drugs sector. The government is likely to consider the recommendations made by a high-level committee known as the Katoch Committee. The recommendations by the committee are being examined for formulation of a ‘Policy for Promotion of Manufacturing of Bulk Drugs’, said Hansraj Gangaram Ahir, Minister of State, Ministry of Chemicals and Fertilizers. The Committee, in its suggestions to the Ministry of Chemicals and Fertilizers, has recommended the establishment of the Mega Parks for APIs. For a proper infrastructure, the Committee recommended common facilities such as Effluent Treatment Plants (ETPs), Testing facilities, Captive Power Plants, Storage Services, testing laboratories, IPR management, among others, as key requirements in the process of establishment of Mega Parks for APIs. All these need to be maintained by the Special Purpose Vehicles (SPV), it added. The Committee further recommended a scheme aimed at providing financial assistance to states in acquiring land, revival of public sector units for starting the manufacturing of selected and very essential critical drugs. A separate financial investment support from the government was also recommended towards the development of clusters. The Committee recommends that the investment from the government may be in the form of the equity fund for the promotion of manufacture of APIs. The Committee also suggests the government to extend fiscal benefits for creation of the entire community cluster infrastructure, individual unit infrastructure and for promotion of the bulk drugs sector. The Committee, on the whole, makes a primary pitch for the industry-academia interaction, enhanced research and development promotion activities by the government agencies, incentivizing scientists, duty exemptions for capital goods imports. The Katoch Committee was constituted by the government as a high-level committee to study, identify the APIs of critical importance, work out a package of interventions, concessions required to build domestic production capabilities and to examine the cost implications.  

May 9, 2015 | 5:21 pm IST.