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Parliamentary Panel asks DoP to expedite process for approval of bulk drug parks
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Gireesh Babu, New Delhi
August 18 , 2022
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Expressing its curiosity on the reasons for the delay in issuing in-principal approval for the bulk drug parks under the Promotion of Bulk Drug Parks Scheme by the Department of Pharmaceuticals (DoP), the Department Related Parliamentary Standing Committee (DRSC) on Chemicals and Fertilisers has recommended the Department to pursue the matter at the highest level and issue the necessary approvals.
The Committee, in its latest report tabled in Lok Sabha earlier this month, observed that it has been informed that the selection of states shall take place once ‘in-principle’ approval is granted and Detailed Project Reports (DPRs) are finalized and continuous efforts are being undertaken to ensure early selection of States and subsequent release of financial assistance under the scheme.
“In this regard, the Committee in the first instance desire to know the precise reason for delay in according ‘in- principle’ approval and finalization of DPRs. The department should had ‘in- principle’ approval and DPRs finalized before requesting states to provide their inputs,” said the Parliamentary Panel headed by Member of Parliament Kanimozhi Karunanidhi in an action taken report on its previous recommendations on the Demands for Grants 2022-23 of the ministry of chemicals and fertilisers (Department of Pharmaceuticals).
“The Committee strongly recommend that the Department should pursue the matter at the highest level and the needed ‘in-principle’ approval etc be accorded. The Committee would like to be apprised of the action taken by the department in this regard,” it added.
The committee, in its previous report, opined that it feel that three bulk drug parks are not adequate to meet the production needs of bulk drugs in the country particularly keeping in view its status of “World Pharmacy”.
“Since there is vast potential for export in the pharma sector, the Committee recommend that more Bulk Drug Parks may be set up in all the aspiring states and the ministry of finance may be approached for requisite budgetary allocation for the purpose,” it said in the previous report.
The Promotion Scheme was introduced by the government with an objective to promote three Bulk Drug Parks by providing Grants-in-Aid for creation of World class Common Infrastructure facilities (CIF). A financial assistance of Rs. 1,000 crore per Park or 70% of the cost of the CIF, whichever is less is provided. The assistance would be 90% for North East Region and Hill States. Total financial outlay for the Scheme is Rs. 3,000 crore and the duration of its implementation is 2020-21 to 2024-25.
The Committee, in its earlier report, noted that this Scheme has not been able to take off since 2019-20. During 2019-20 only a token allocation was made. Later during 2020-21, Rs.1.68 crore was utilized out of RE allocation of Rs.1.69 crore for Project Management Agency. Further during 2021-22, Rs. 36.24 crore at RE stage remained unutilized as the process to select beneficiary states could not be completed. However, it was noted that an amount of Rs. 900 crore has been allocated in BE 2022-23. This amount will be used to give first instalment of Rs. 300 crore each to the three selected states for creation of Common Infrastructure Facilities (CIFs) as grant-in-aid.
While the government has been maintaining that around 13 states have proposed for implementation of the scheme and they are under consideration, no announcement regarding the in-principle approval for these projects has been announced by the Department so far. States including Gujarat, Uttar Pradesh, Tamil Nadu, Telangana, Karnataka, Madhya Pradesh, Rajasthan and others have submitted the proposals, according to reports.
Since the Project Management Agency (PMA) has identified certain issues in the proposals received under this scheme during 2021-22, an advisory Committee has been constituted with CEO NITI Aayog, secretary, DoP and representatives of DPIIT & Department of Expenditure which has advised the Department to apply a set of qualitative filters to the proposals received looking at the higher technology, market and environmental risks emerging in the last year in respect of the Bulk Drug segment.
In response to the recommendations in the previous report, the DoP informed the Committee that the recommendation of the committee is well taken and as provided by the guidelines of the scheme, the selection of States shall take place once in-principle approval is granted and DPRs are finalized. In pursuance to the same and guidance provided by the Advisory Committee constituted under the chair of CEO, NITI Aayog, continuous effort is being undertaken by the Department to ensure early selection of States and subsequent release of financial assistance under the Scheme, it said.
“After implementation of the scheme for 3 bulk drug parks and evaluation of performance thereof, a considered view may be taken to assess need for expansion in view of prevailing situation in terms of level of drug security achieved, proliferation of parks/clusters, adequacy of market incentives and incentives given by respective state governments, etc,” added the department.
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