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Investments based on IEMs filed by pharma industry in first 10 months show decline
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Gireesh Babu, New Delhi
January 06 , 2023
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The pharmaceutical industry has reported investments to the tune of Rs. 2,828 crore in 19 projects in the first 10 months of the year, out of the investment intentions it has filed through the Industrial Entrepreneur Memorandum (IEMs) with the government. This is a decline compared to the Rs. 3,453 crore invested in 28 projects through implementation of IEMs during the same period of 2021, according to data from the ministry of commerce and industry.
From January to October, 2022, the industry submitted investment intentions in terms of IEMs worth Rs. 6,456 crore in 46 memoranda, which is also lower than the Rs. 9,112 crore investment commitments filed in 63 IEMs during the period from January to October, 2021.
It may be noted that the investment intentions from the drugs and pharmaceutical industries has hit a five year high of Rs. 13,611 crore in 75 IEMs during the 12 months of 2021, which was also a jump of 84.5 per cent in terms of value from the Rs. 7,376 crore worth of 77 IEMs filed in the whole year of 2020. The year 2021 was also the year in which the industry faced the pandemic of Covid-19, which has lead to serious churn in all aspects of business.
According to the data available, the industry reported an investment of Rs. 3,599 crore in 30 projects during the year 2021, out of the investment intentions it has filed through IEMs with the Ministry. This is also a decline from the investments in the year 2020, as out of the IEMs it committed, it has implemented 39 projects worth Rs. 5,599 crore during the 12 months ended December, 2020.
Medical and surgical instruments sector has seen implementation of two projects worth a total of Rs. 74 crore during the 10 months ended October, 2022, which is also a significant decline compared to Rs. 213 crore investment reported in two projects, through the IEM intentions filed by the industry, during the same period of previous year.
The sector has reported investment intentions of Rs. 361 crore filed in five IEMs during the 10 months ended October, 2022, which is also a decline from the Rs. 556 crore investments committed through nine IEMs during the corresponding period of 2021. Interestingly, no further investments were committed in the sector during the rest of the two months in 2021.
Industrial undertakings exempted from the requirements of Industrial Licensing under the Industries (Development and Regulation) Act, 1951 are required to file information relating to setting up of industries known as IEM (Industrial Entrepreneur Memorandum). All industrial undertakings exempted from the requirements of industrial licensing under I (D&R) Act, 1951 and having an investment in plant and machinery of Rs. 50 crore and above; and turnover of Rs. 250 crore and above, including Existing Units, New undertaking (NU) and New Article (NA), may file an IEM, that is in Form IEM in the prescribed format 'Part A', according to the Ministry.
All Industrial undertakings which had filed IEM are required to report commencement of commercial production and this is also filed on-line on the same portal by way of filing information as per prescribed form 'Part B' of the IEM after commencement of commercial production by the establishment.
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