On Thursday, the Prime Minister, Shri Narendra Modi laid the foundation stone of Bulk Drug Park and dedicated the Indian Institute of Information Technology (IIIT) Una to the nation. He also flagged off the inaugural run of the new Vande Bharat Express from Amb Andaura, Una to New Delhi.
Prime Minister’s clarion call for Aatmanirbhar Bharat has led to the country moving swiftly towards the attainment of self-reliance across multiple sectors, through the support of various new initiatives of the government.
One such key sector is pharmaceuticals. To bring in Aatmanirbharta in this sector, the Prime Minister laid the foundation stone of Bulk Drug Park at Haroli in Una district, which will be built at the cost of over Rs 1900 crore. The Bulk Drug Park will help reduce dependence on API (Active Pharmaceutical Ingredient) imports. It is expected to attract investment of around Rs. 10,000 crores and provide employment to more than 20,000 people. It will also give a fillip to economic activities in the region.
The Prime Minister also dedicated the Indian Institute of Information Technology (IIIT) Una to the nation. The Prime Minister had laid its foundation stone in 2017. Currently, more than 530 students are pursuing studies at this institute.
The Department of Pharmaceuticals has conveyed ‘in-principle’ approval to the proposals of the three States Viz, Himachal Pradesh, Gujarat, and Andhra Pradesh under the Scheme for “Promotion of Bulk Drug Parks”, a key initiative to support Bulk Drugs manufacturing in the country. The Scheme, with a financial outlay of Rs. 3,000 crores notified in 2020, provides financial assistance to three States for establishing Bulk Drug Parks and aims to bring down the cost of manufacturing bulk drugs by the creation of world-class common infrastructure facilities supported by the Central Government and thereby increase the competitiveness of the domestic bulk drug industry.
The Indian Pharmaceutical industry is the 3rd largest in the world by volume. India exported pharmaceuticals worth Rs. 1,75,040 crore in the financial year 2021-22, including Bulk Drugs/ Drug Intermediates. Also, India is one of the major producers of Active Pharma Ingredients (API) or bulk drugs in the world. India exported Bulk Drugs/ Drug Intermediates worth Rs. 33,320 crores in the financial year 2021-22.
However, the country also imports various Bulk Drugs/ APIs for producing medicines from various countries. Most of the imports of the Bulk Drugs/APIs being done in the country are because of economic considerations.
As per PIB, the Government strives to minimize the country’s dependence on imports and to give a fillip to indigenous manufacturing. In order to make the country self-reliant in APIs and drug intermediates, the Department of Pharmaceuticals is implementing various schemes and one of the key interventions is the Scheme for Bulk Drug Parks.
The Bulk Drug Parks to be developed under the scheme will provide common infrastructure facilities in one place thereby creating a robust ecosystem for Bulk Drug manufacturing in the country and also reducing the manufacturing cost significantly.
This scheme is expected to encourage domestic manufacturing of bulk drugs to reduce import dependence and to establish a dominant position in the global market by providing easy access to standard testing & infrastructure facilities.
This scheme will also help the industry meet the standards of the environment at a reduced cost through innovative methods of the common waste management system and also exploit the benefits arising due to the optimization of resources and economies of scale.
Under the scheme, proposals were received from 13 States. The Department was guided by an Advisory Committee under the CEO, NITI Aayog in the appraisal of the proposals, based on quantitative as well as qualitative methodology.
The financial assistance to the proposed Bulk Drug Park in Gujarat and Andhra Pradesh would be 70% of the project cost of common infrastructure facilities. In the case of Himachal Pradesh, being the Hilly States, financial assistance would be 90% of the project cost. Maximum assistance under the scheme for one Bulk Drug Park would be limited to Rs. 1000 crores.
As per the proposals submitted by these States, the Bulk Drugs will be established in 1402.44 acres of land at Tehsil Haroli, District Una, Himachal Pradesh, 2015.02 acres of land at Tehsil Jambusar, District Bharuch, Gujarat, and 2000.45 acres of land at K.P. Puram &Kodhada of Thondagi Mandal of East Godavari District, Andhra Pradesh. These three States were instructed to submit their Detailed Project Reports in the next 90 days, to appraise the same and to process for issuance of final approval under the scheme.
The scheme reflects the spirit of cooperative federalism where the Central Government and State Governments will partner to develop the Bulk Drug parks for better performance of the sector.
Other interventions of the Department, in ensuring domestic manufacturing of Bulk Drugs, include,
Production Linked Incentive (PLI) Scheme for domestic manufacturing of KSMs/ Drug Intermediates (DIs) and APIs. Under this scheme, a total of 51 projects have been approved, out of which, 14 projects have already been commissioned and started manufacturing of the drugs.
PLI for Pharmaceuticals provides financial incentives to 55 selected applicants for manufacturing of identified products under three categories and eligible drugs under this scheme include APIs.
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