DoP targets 25% completion of infra facilities in parks under Central Sector schemes
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Gireesh Babu, New Delhi
July 30 , 2024
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The Department of Pharmaceuticals (DoP) is looking at completion of 25 per cent of the infrastructure facilities in the bulk drug parks and medical devices parks supported through the Central Sector schemes, benefitting 10 industries from each sector in the respective parks.
Under the Assistance to Medical Device Clusters for Common Facilities (AMD-CF), brought in by the DoP in May last year, with a proposed financial outlay of Rs. 300 crore to offer financial assistance to strengthen the existing and new medical device clusters through creation of common infrastructure facilities, the Department is expected to either approve or complete 10 common facility and testing labs to benefit around 20 industries during the fiscal year, according to the Outcome Budget 2024-25.
For the Scheme for Development of Pharmaceutical Industry, under which the Central Sector and the Centrally Sponsored Schemes are created, a financial outlay of Rs. 1,300 crore has been allocated by the Ministry of Finance for the year 2024-25.
The bulk drug parks scheme, which is to provide support for creation of world class facilities in selected bulk drug parks, is expected to see 25 per cent of infrastructure facilities to be completed during the fiscal, and the outcome of this is expected to benefit at least 10 industries in the park.
Similarly, the Medical Devices Parks scheme, which is to provide support for creation of world class facilities in selected medical devices parks, is expected to see completion of 25 per cent of the infrastructure facilities and the outcome expected is to benefit 10 industries in the park.
The AMD-CF may see approval or completion of 10 projects during the fiscal, which is expected to benefit 20 industries in the project.
While the industry sources allege that the scheme has not benefitted them, the Department expects that under the Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS), around 200 pharma units will be approved for upgrade to World Health Organisation's (WHO) Good Manufacturing Practices (GMP) standards. The scheme, envisaged to increase the pharmaceutical units compliant to the WHO GMP standard, is expecting a 10 per cent increase in GMP compliant plants over 2023-24 due to the support.
The Assistance to Pharmaceutical Industry for Common Facilities (API-CF), for creation of common facility centre (CFC) in pharmaceutical clusters, is expected to see three projects sanctioned in FY2022-23 reaching completion. This is expected to benefit 15 industrial units, says the Department.
Under the lately launched Human Resources Development in Medical Device Sector scheme, floated for infrastructure development and training in medical devices, the Department is expecting that 200 students to be admitted to Master's level courses in selected institutes, and organising 10 certificate courses for medical devices technicians.
The Department is targeting this to help a 100 students successfully completing MediTech courses in the selected institutes and another 1,000 technicians successfully upgraded through certificate courses.
Under the Pharmaceutical and Medical Device Promotion Development Scheme (PMPDS), the DoP is targeting organisation of 10 conferences, seminars, or workshops to enhance awareness and sensitise pharma industry on issues relevant for the industry. The Department is expecting 1,000 people to participate in these events.
Besides, under the scheme, the Department is expecting four studies to be undertaken on pharmaceutical and meditech industry and these reports to be finalised during the current fiscal year.
It may be noted that the budget allocation for the DoP is estimated to go up by 29.4 per cent to Rs. 4,089.95 crore during the fiscal year 2024-25, as compared to the Rs. 3,160.06 crore outlay estimated for the fiscal year 2023-24, backed by a 78.6 per cent increase in allocation towards the production linked incentive (PLI) schemes.
The outlay for the central sector scheme Development of Pharmaceutical Industry will see a four per cent increase to Rs. 1,300 crore as compared to Rs. 1,250 crore BE in 2023-24.
Promotion of Bulk Drug Parks under the Development of Pharmaceutical Industry will have an allocation of Rs. 1,000 crore as against the BE of Rs. 900 crore in 2023-24, while the Promotion of Medical Devices Parks will see a reduction to Rs. 150 crore in 2024-25 allocation compared to Rs. 200 crore in the BE of previous fiscal year. The expenditure incurred for these projects during the fiscal 2023-24 according to the RE was significantly lower than the initial outlay.
Allocation for AMD-CF is Rs. 40 crore, as compared to the expenditure of Rs. 33 crore in the fiscal year 2023-24. API-CF/cluster development will have a Rs. 50 crore allocation as compared to Rs. 51 crore allocation in the BE for 2023-24.
Allocation for PTUAS has been significantly cut back to Rs. 5 crore for the fiscal 2024-25, from the BE of Rs. 95 crore for the previous fiscal year.
The PLI schemes will have an allocation of around Rs. 2,143 crore, with 78.6 per cent jump from the Rs. 1,200 crore allocated during the previous fiscal year.
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