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Source: The post is based on the article “Centre Grants ‘in-Principle’ Approval of three Bulk Drug Parks to Himachal Pradesh, Gujarat and Andhra Pradesh” published in PIB on 1st September 2022.
What is the News?
The Department of Pharmaceuticals has granted ‘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”.
Why was the Scheme for Promotion of Bulk Drug Parks launched?
Indian pharmaceutical industry is the 3rd largest in the world by volume and 14th largest in terms of value. India contributes 3.5% of total drugs and medicines exported globally.
– However, despite these achievements, India is significantly dependent on the import of some of the critical basic raw materials, viz., bulk drugs that are used to produce the finished dosage formulations.
– India imports bulk drugs largely for economic considerations. Bulk drugs accounted for 63% of the total pharmaceutical imports in the country during 20 18-19. Hence, to reduce these imports of Bulk Drugs, the scheme has been launched.
What is the objective of the Scheme for the Promotion of Bulk Drug Parks?
Launched in: 2020
Objective: To provide financial assistance to three states for establishing Bulk Drug Parks and aims to bring down the cost of manufacturing bulk drugs by creating world-class common infrastructure facilities.
Key Features of the scheme
Three bulk drug parks will be supported under the Scheme.
Maximum grant-in-aid for one bulk drug park will be limited to Rs 1000 crore.
Under the scheme, a one-time grant-in-aid will be provided for the 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 the case of the North Eastern States and the Hilly States, the grant-in-aid will be 90% of the common infrastructure facilities.