SCHEME FOR PROMOTION OF BULK DRUG PARKS

BACKGROUND: Future growth of pharmaceutical sector is contingent upon our ability to ensure un-interrupted supply of quality bulk drugs and our capacity to upscale their manufacturing during emergency situations. Self-reliance in manufacturing of bulk drugs is, therefore, highly desirable.

The scheme envisages for significantly bringing down the manufacturing cost of bulk drugs and thereby increasing the competitiveness of the domestic bulk drug industry by providing easy access to standard testing & infrastructure facilities.

OBJECTIVE:

1. Setting up of 3 mega bulk drug parks in the country for providing easy access to world class Common Infrastructure Facilities (CIF) to bulk drug units located in the park in order which can significantly bring down the manufacturing cost of bulk drugs.

2. Make India self-reliant in bulk drugs by increasing the competitiveness of the domestic bulk drug industry.

3. To meet the standards of environment at a reduced cost through innovative methods of common waste management system in the pharma industry.

SALIENT FEATURES:

    • It is a Central Sector Scheme with total financial outlay of Rs. 3000 Crore.
    • Three bulk drug parks will be supported under the Scheme and maximum grant-in-aid for one bulk drug park will be limited to Rs 1000 crore.
    • Gujarat, Himachal Pradesh and Andhra Pradesh were selected under the scheme for providing grant-in-aid for creation of common infrastructure facilities in their proposed Bulk Drug Parks.
    • The duration of the Scheme is from Fiscal Year 2020-2021 to 2024-2025.
    • Under the scheme, a one-time grant-in-aid will be provided for creation of common infrastructure facilities in selected Bulk Drug Park proposed by a State Government.
    • The scheme will be implemented through a State Implementing Agency (SIA), a legal entity, set up by the concerned State Government.
    • The grant-in-aid will be 70% of the project cost of the common infrastructure facilities (CIF). In case of North Eastern States and Hilly States (i.e. Himachal Pradesh, Uttarakhand, UT of Jammu & Kashmir and UT of Ladakh), the grant-in-aid will be 90% of the common infrastructure facilities.
    • Project Management Agency (PMA): A Project Management Agency (PMA) will be nominated by Department of Pharmaceuticals for providing secretarial, managerial and implementation support to DoP for effective implementation of the Scheme and would be responsible for:
      • Preliminary examination of the proposals received from states.
      • Appraisal of proposals and making appropriate recommendations to the Scheme Steering Committee.
      • Assisting DoP in periodic monitoring of the projects and timely disbursement and utilization of the funds.
    • State Implementing Agency (SIA): State Implementing Agency (SIA) shall be a legal entity (with minimum 51% equity shareholding of State Government in the paid-up capital of SIA) set up by the State Government for the purpose of implementing the Bulk Drug Park Project.

SIGNIFICANCE:

    • It will make India self-reliant in APIs and drug intermediates and minimize dependence on imports.
    • Give a fillip to indigenous manufacturing of crucial raw materials for medicines and increase the competitiveness of the domestic bulk drug industry.
    • Will bring down the cost of manufacturing bulk drugs.
    • Help in the production of quality raw materials.
    • Increase the competitiveness of the domestic bulk drug industry.
    • Provide quality and affordable medical care to people.
    • Ensure a consistent and reliable supply of essential drugs.
    • Promote innovation and collaboration in the industry.
    • Facilitate cost-effective production through shared facilities and economies of scale.
    • Improve the availability and affordability of medicines for the population.
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