NEW DELHI: Giving a major boost to local production of drug API and high end medical devices, the government on Monday released guidelines of four incentive schemes for the development of bulk drug and medical device parks across the country.
The production linked incentive schemes were approved by the Cabinet in March and are worth over Rs 10,000 crore.
The schemes are aimed at reducing India’s dependence on China for raw materials to produce crucial antibiotics, anti-HIV drugs, vitamins, and cardio medicines, and in production of medical devices, for which India is crucially dependent upon imports.
“In line with the vision of Prime Minister Narendra Modi, the schemes have been conceptualised for making India Atma Nirbhar in pharma sector,” Union minister of chemicals and fertilizers D V Sadananda Gowda said.
The scheme primarily deals with production of 53 critical active pharmaceutical ingredients (APIs) or key starting materials (KSMs).
The coronavirus crisis has exposed the weakness in global supply chains and posed threat to the health security of the country, Gowda said.
While proactive steps by the Department of Pharmaceuticals and the National Pharmaceutical Pricing Authority ensured steady supply of medicines, and prevented any shortage even during the lockdown, it was felt that domestic capabilities in production of APIs and medical devices have to be ramped up in order to eliminate any risks to the health security, he added.
“The details of the schemes have been drawn up meticulously after having in depth consultations with stakeholders including industries and state governments. The selection of their location will be based on objective criteria, and in spirit of competitive federalism,” Gowda said.
Similarly, eligible manufacturers will be selected for the PLI scheme on the basis of marks obtained in the evaluation criteria as per the guidelines, he added.
“Supported by both central and state governments, these parks will be based on plug and play model with prior regulatory approvals, state of art infrastructure, excellent connectivity, affordable land, competitive utility charges, and strong R & D ecosystem and so on,” Gowda said.
“I am sure that these schemes will elicit good response from interested companies. These parks will be able to attract significant investment as well as latest technology. Once operational, in about two to three years, these parks will generate thousands of direct and indirect jobs, reduce import dependency and, make India a global pharmaceutical hub,” Gowda said.
The idea is also to cement India’s position as global drug supplier. As already known, in spite of various odds, India supplied critical medicines such as hydroxychloroquine and paracetamol to number of countries, he added.