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Investments based on IEMs filed in pharma sector see over two-fold growth in 2023
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Gireesh Babu, New Delhi
May 14 , 2024
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pharmaceutical industry has reported investments implemented to the tune of Rs. 8,165 crore in 35 projects in the year 2023, out of the investment intentions filed in the sector through the Industrial Entrepreneur Memorandum (IEMs) with the government.
This is a growth of two and a half times in value terms compared to the Rs. 3,185 crore invested in 23 projects through implementation of IEMs during the year 2022, according to data from the ministry of commerce and industry.
The actual investment during the year 2023 is also higher than the investments from IEMs implemented during the year 2021. In the year 2021, the sector witnessed 30 projects implemented with a total investment of Rs. 3,599 crore.
Meanwhile, the IEMs filed by the industry during the year 2023 has seen a decline of 1.7 per cent to Rs. 7,899 crore in 37 projects, as compared to Rs. 8,032 investment interests shown in 53 projects during the previous year.
The year 2022 also reported a decline in filing of IEMs as compared to the previous year, since 2021 witnessed highest interest from the industry to invest in the sector as against the IEMs filed in the previous five years, with 75 IEMs filed envisaging an investment of around Rs. 13,611 crore.
The year 2021 reported 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. It 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.
In the medical and surgical instruments sector the investments made during the year 2023 against the IEMs filed, was at Rs. 54 crore in one project. The actual investments against the intentions filed were on a decline in 2022 and 2023 as compared to 2021, in terms of value, according to official data.
According to the data, the sector witnessed Rs. 213 crore investment in two projects in 2021, while reported a decline to Rs. 74 crore investments implemented in two projects in the year 2022.
The sector has reported a decline in IEMs in terms of value committed in the year 2023, at Rs. 454 crore in eight projects, as compared to Rs. 461 crore in six projects, filed in the year 2022. The year 2021, the IEMs filed was at a high of nine projects at Rs. 556 crore.
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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