The government, in August 2020, had approved the Production Linked Incentive (PLI) Scheme for the promotion of domestic manufacturing of critical Key Starting Materials (KSMs), Drug Intermediates, Active Pharmaceutical Ingredients (APIs) in India. Through this scheme, the government wants to attain self-reliance and reduce import dependence.
A senior official told a local media outlet that the central government is working on a Rs 15,000 crore PLI for the pharmaceutical industry. He said the PLI scheme is in works and is aimed at giving impetus to the pharma industry. The official added that an incentive of five to ten per cent on set value will be provided for the complex biologicals and other pharmaceuticals. An industry expert said the proposed scheme will give a thrust to the pharma industry in the country, especially in complex formulations, and will help the sector regain dominance.
The scheme attracts big investment ranging from Rs 20 crore to Rs 400 crore. With this in mind, the Rajasthan Pharmaceutical Manufacturers Association (RPMA) has urged the state government to attract pharma investors to Rajasthan. The Association also wants the state administration to get one bulk drug park, out of the three parks announced by the Center, with grant-in-aid of Rs 1,000 crore each. The Union Ministry of chemicals and fertilizers had launched Bulk Drug Park Scheme
Highlighting the tensed relationship with China, Vinod Kalani who is the RPMA president, said state policy is warranted to boost the API industry. The state government should focus on getting one bulk drug park out of the three parks, he said. A large chunk of land is available with Rajasthan State Industrial Development & Investment Corporation Ltd which can be earmarked for bulk drug park. Kalani said it will attract investment in the field of APIs, intermediates and KSMs etc. make the country self-reliant in API production including manufacturing of 53 identified APIs. There are many more APIs which are being imported from China and other countries. He pointed out that there are about 100 drug companies in the state including APIs and formulations; requisite amendments in the pollution control norms and fast track clearances by state pollution control board will entice drug firms to start operation in the state.
The Center in its guidelines of the Scheme Promotion of Bulk Drug Parks highlights that future growth of pharmaceutical sector is contingent upon their ability to ensure un-interrupted supply of quality bulk drugs and the capacity to upscale manufacturing during emergency situations. It said self-reliance in manufacturing of bulk drugs is highly desirable. The government approved the Promotion of Bulk Drug Parks on March 2020. Its objective is to promote setting up of 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 to significantly bring down the manufacturing cost of bulk drugs, and make India self-reliant in bulk drugs by increasing the competitiveness of the domestic bulk drug industry.