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Karnataka’s new Industrial Policy makes state’s Pharmaceutical Policy of 2012 redundant
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Nandita Vijay, Bengaluru
October 29 , 2014
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Karnataka’s new Industrial Policy (KIP) 2014-2019 seems to have made the
State’s Pharmaceutical Policy 2012 redundant. The fate of the
much-awaited implementation of the Pharmaceutical Policy 2012 was
fraught with delay. Although the final execution was to come in from the
state government some time back, the move to launch a comprehensive KIP
2014-19 now would ensure overall development of the State.
The
KIP 2014-2019 has provided all sops and incentives to spur inclusive,
sustainable and balanced industrial development thereby creating large
employment opportunities. Particularly for the state’s 251 pharma
companies with a turnover of Rs.12,000 crore of which exports accounts for Rs.6,000 crore, the KIP 2014-2019 seems to be a booster shot. The state exchequer receives around Rs.4,500 crore from the pharma sector, the benefits ensuing from the KIP 2014-2019 could be far more attractive.
According
to Raghurama Bhandary, drugs controller, government of Karnataka, a
state industrial policy is the mother of all policies and currently this
seems to supersede the State’s Pharmaceutical Policy 2012 at the face
of it.
“Now if our State’s Pharmaceutical Policy 2012 which was
much favoured by the 251 companies, has got any additional benefits
compared to the KIP 2014-2019, then its existence would hold ample
relevance in the current scenario”, he added.
The state’s pharma
industry has been grappling with national development issues which
include regulatory issues in clinical trial clearances and the Drug
Price Control Order (DPCO) impacting almost every company besides a
global regulators vigilance.
Karnataka Pharmaceutical Policy 2012
was focusing to drive investments in the sector. The state was also
scheduled to announce in its Budget 2014-15 about the efforts on the
formation of the Karnataka Pharmaceutical Development Council (KPDC)
with a budgetary provision of Rs.1 crore and the Vision Group on Pharmaceuticals with a Rs.25 lakh allocation which are two monitoring agencies. But none of these came through.
It is gathered that the efforts by the Karnataka Drugs and
Pharmaceutical Manufacturers Association (KDPMA) to form a Vision Group
on Pharmaceuticals to get an approval from the state government went in
vain. The former state industries and commerce principal secretary N
Maheswar Rao who was working to ensure that the Vision Group on
Pharmaceuticals would be created was transferred.
“A key
attraction of the KIP 2014-2019 is the excise duty exemption for
Hyderabad Karnataka Area as being offered to Seemandhra as Hyderabad
Karnataka Area and abolishing of trade licensing fee”, noted Harish K
Jain, treasurer, KDPMA and director, Embiotic Laboratories (P) Ltd.,
Further,
goods manufactured by Micro & Small Enterprises located in the
State will be allowed price preference of 15% against the Large and
Medium industries of the State and units of other States during
Government departments’ purchases. Now these are seen to be big
benefits, added Jain.
According to Dr BR Jagashetty, former
Karnataka drugs controller who was instrumental to propel the unveiling
of the Pharmaceutical Policy in 2012, the state government had ample
time to implement it. If it had done so, then Karnataka would have been
the first state in the country to execute a dedicated Pharmaceutical
Policy.
“However, if KIP 2014-2019 covers all the points of the
Pharmaceutical Policy, then we are only looking at the end result that
would give a fillip to the industry”, he added.
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