Govt announces package to boost drug manufacturing

Govt announces package to boost domestic drug manufacturing

The Union Cabinet headed by Prime Minister Narendra Modi took four schemes to boost the bulk drugs and API

Representative image (iStock Photo)

In a boost to domestic manufacturing of bulk drug in the country, the Centre on Saturday announced Rs 13,760 crore package which includes incentivise production of active pharmaceutical ingredient (API) in the country and making of medical devices.

With the coronavirus outbreak in China has led to complete stoppage of import of bulk drug and API to India, the government announced the package to boost the domestic production.

The Union Cabinet headed by Prime Minister Narendra Modi took four schemes to boost the bulk drugs and API.

Under the first scheme, the government will provide a budget of Rs 3,000 crore to set up three bulk drug parks. As per the scheme, one park will get Rs 1000 crore and the state governments will come up with 1000-acre of land for such parks, Union Minister for Fertilizer and Chemicals D V Sadananda Gowda told reporters here.

Simultaneously, a bulk drug incentive scheme would be run with a total budget of Rs 6,940 crore. This scheme would provide 20 % incentive on production cost to investors proposing bulk drug units for a period of four years. The incentive will be 15 % in fifth year and 5 % from sixth year, Gowda said

The Centre also announced the budget of Rs 3,420 crore to incentivise production of medical devices by companies. This is a production linked incentiveis as the government will provide funds to encourage companies to produce radiotherapy medical devices, radiology and imaging medical devices (both ionizing & non-ionizing   radiation products) and nuclear imaging devices.

The government also financing common infrastructure facilities in 4 medical device parks with financial implications of Rs. 400 crore. The state which set up parks will get Rs 100 core for each park said Gowda.

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