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Parliamentary panel expresses dismay on tardy progress of Medical Devices Parks under DoP scheme
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Gireesh Babu, New Delhi
December 31 , 2024
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The Parliamentary Standing Committee on Chemicals and Fertilisers has expressed dismay on the inability of the state governments to utilise the first instalment of Medical Devices Parks scheme, years after it was released by the Centre, despite regular review by the Department of Pharmaceuticals (DoP).
The Panel, in its second report in the 18th Lok Sabha, was analysing the action taken by the government on the observations and recommendations of the committee in their previous report (15th report of the 17th Lok Sabha), on Promotion of Medical Device Industry.
The Committee noted in their recommendation that the first instalment of Rs. 30 crore released to each of the four states i.e. Himachal Pradesh, Tamil Nadu, Madhya Pradesh and Uttar Pradesh for setting up of Medical Devices Parks in the Year 2021-22 remained unspent even during the Year 2022-23.
The Department, in their Action Taken Reply stated that IFCI has also been engaged as Project Management Agency under the Scheme for providing secretarial, managerial and implementation support to the Department for effective implementation of the Scheme and also to assist the Department in periodic monitoring of the project and timely disbursement and utilization of the funds and the Department is regularly reviewing the progress of the creation of the common infrastructure facility in the four Medical Devices Parks.
"The Committee are dismayed to note that despite regular review of the progress for setting up the Medical Device Parks and engagement of IFCI, the four states have apparently not been able to utilize the amount of the first instalment which had since been released in the Year 2021-22," said the panel report.
The Committee therefore, reiterated their earlier recommendations and desired that a detailed information regarding release of subsequent instalments of funds to the four states along with the steps taken for their timely utilisation be furnished. The Committee also asked the DoP to furnish the reasons for delay in utilization of funds.
In another report related to the budget allocation for the DoP submitted in the Parliament during the recent session, the Panel observed that Himachal Pradesh has withdrawn from the Scheme, which is "perturbing".
"The Department will have to obtain proposal from another state, evaluate the same and release grant which is a very time consuming process and would cause considerable delay in the implementation of the Scheme", said the panel.
The Committee desired that the Department may initiate concrete steps in this regard to expeditiously set up the Medical Devices Parks in the remaining states, added the report.
The Department, in its previous report on the promotion of medical devices industry, observed the non-utilisation of the funds by the states and opined that it is unfortunate that even a modest amount of Rs. 120 crore for four states remained unspent during 2022-23 and only Rs. 89 lakh were utilized.
"The Committee are of the opinion that the whole scheme has no meaning if funds allocated are not utilized by the respective states. There is a need for regular monitoring with regard to the progress of the project in coordination with the state agencies so that remedial measures are taken and successful creation of Common Infrastructure Facilities under the scheme is ensured," said the panel in the previous report, which was reiterated in the latest report.
"The Committee are unhappy with the tardy progress in the implementation of the schemes and urge the Department that the scheme should be implemented with all seriousness," said the panel in its previous report, also adding that possibilities of expanding the schemes to other states, where the medical device industry is more vibrant, should be explored by the DoP.
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