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Parliamentary panel asks DoP to take up issues related to schemes with state agencies
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Gireesh Babu, New Delhi
January 02 , 2024
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The Parliamentary panel that looked into the budget allocation for the Department of Pharmaceuticals (DoP) and related matters has recommended that the DoP should take up issues related to implementation of various infrastructure development schemes at the highest level with the state implementing agencies.
The panel expressed its dismay in noting that the actual expenditure of the Department for the years 2021-22, 2022-23, 2023-24 remained far less than the allocated funds.
The Parliamentary Standing Committee on Chemicals and Fertilisers in its fifth report on the Demands for Grants of the DoP for the fiscal year 2024-25 submitted in the Lok Sabha during the recently concluded session, expressed its hope that the Department would be able to utilise the funds allocated in an efficient manner for the year 2024-25.
In response to the panel's questions related to the underutilisation of funds in the previous years, the DoP has submitted that in the infrastructure’s Schemes such as the Bulk Drug Parks, Medical Device Parks, and Cluster Development Schemes, the release of funds depends upon the actual expenditure on the capital projects by the state agencies.
This further depends upon the tendering processes and mandatory clearances from regulatory bodies and adding their shares of funds. Similarly, in the PLI schemes, the actual release of incentives depends upon the fulfillment of Scheme guidelines and sanction provisions.
The Committee were also apprised that the Department has reviewed the functioning of the Schemes of Medical Devices and has formulated a new Umbrella Scheme in 2024-25 for Strengthening of Medical Device Industry for more focused approach and efficient utilization of funds. The panel said that it found consolation that the DoP has reviewed the functioning of the scheme and has formulated the umbrella scheme.
"The Committee, however, desire that the Department should take up the matter at the highest level with State agencies etc. for more robust coordination to ensure timely and optimal utilization of funds in future," recommended the panel.
The panel noted that the fund utilized by the Department was 94.14 per cent, 90.37 per cent, 90.15 per cent for the years 2021-22, 2022-23 and 2023-24, respectively. Further, the Department has stated that the expenditure up to October, 2024 was Rs. 1,363.55 crore (33.34% of BE) and it will pick up in the subsequent months when the PLI beneficiary companies will be raising claims for incentives.
Moreover, the releases under the Pharmaceuticals and Medical Device Schemes will be made on the basis of demand from the concerned agencies and sanctioning of new proposals etc.
"The Committee hope and trust that the Department would be able to utilize the funds allocated in an efficient manner for the year 2024-25 too," said the panel.
As reported earlier, the panel in the report has raised concerns over the consistent decline in funds allocated for various schemes run by DoP as against the considerable increase in the Budget Estimates (BE). It has sought the DoP to analyse the reasons for reduced allocation and utilisation allocated funds in a time bound manner.
"The Committee recommends that the Department should analyse the reasons for reduced allocation of funds in these Schemes and initiate corrective measures therein," it added.
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