India's Largest Database on New Projects
VC fund to promote R&D in pharma
12 July 2010: The Union Government is mulling to set up a Rs 10,000-crore venture capital (VC) fund for financing new drug discovery projects in the country.
The government is likely to invite bids from consultancy firms for establishing a venture capital fund in PPP that will finance research and development (R&D) activities in the pharmaceutical segment. It will soon invite bids from advisors to prepare a DPR on the proposed fund. National Institute of Public Finance and Policy (NIPFP) is advising the department in the process of selecting an agency to design the fund.
The initial target will be to raise up to Rs 3,000 crore by 2011-12, and it will be gradually increased to Rs 10,000 crore by 2015. The proposed funding of Rs 10,000 crore, which includes substantial contribution from the private pharma industry under the PPP model, is likely to bring about a favourable environment for drug innovation.
As per the proposal, the government intends to undertake pro-active steps on four fronts -- building infrastructure for talent and research, encouraging public-private partnerships in infrastructure development, providing financial incentives to encourage innovation, and shaping a favourable regulatory environment.
Source: Economic Times