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Union Cabinet approves promotion of bulk drug parks, domestic manufacturing

Thursday, 26 Mar 2020
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The Union Cabinet has recently given its approval for promotion of bulk drug parks and domestic manufacturing of key starting materials (KSMs), drug intermediates and active pharmaceutical ingredients (APIs),

At present, India is dependent on imports of basic raw materials like KSMs, drug intermediates and APIs to produce medicines in the country. The ministry has chalked out an umbrella scheme of Rs 13,760 crore with four schemes on bulk drug manufacturing and medical devices manufacturing in the country to achieve national security of drugs. The Union Cabinet has recently approved all the four schemes.

The bulk drug scheme will help establish three bulk drug parks with a minimum area of 1,000 acre where the Centre will provide grant-in-aid to the tune of Rs 1,000 crore for creating common facilities like solvent recovery plant, power and steel units, distillation plants, common effluent treatment plants, etc.

The production-linked incentive scheme for bulk drug parks aims at giving incentive on an incremental basis. The ministry has identified 53 critical KSMs/APIs and drug intermediaries, out of which 26 are fermentation-based and 27 are chemical-based.

For fermentation-based raw material production, it will give incentive at 20 percent for the first four years, 15 percent for the fifth year and five percent for the sixth year on incremental manufacturing of raw materials. In case of chemical-based raw materials, the ministry will give 10 percent incentive during the six-year period of the scheme.

The expected outcomes will be drug security through self-sufficiency in manufacturing of 53 critical bulk drugs, ensure availability of various essential drugs listed under NLEM at affordable prices and cumulative reduction in imports by around Rs 46,400 crore in the next eight years.

Moreover, at the end of five years, import substitution per annum will be Rs 8,500 crore, against current imports of Rs 19,000 crore of specified drugs. The schemes would also create 7,000 direct employment and 14,000 indirect jobs.

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