Context: The Andhra Pradesh Industrial Infrastructure Corporation has entered into an agreement with the Council of Scientific and Industrial Research – Indian Institute of Chemical Technology combine for the promotion of a Bulk Drug Park in the State.

Analysis

1. The Indian pharmaceutical industry is the 3^rd largest in the world by volume.
2. However, despite this achievement, India is significantly dependent on import of basic raw materials, viz., Bulk Drugs that are used to produce medicines.
3. In some specific bulk drugs, the import dependence is 80 to 100%.
4. In this context, the Union Cabinet recently approved the following schemes: the scheme on Promotion of Bulk Drug Parks and the Production Linked Incentive (PLI) Scheme.

Promotion of Bulk Drug Parks

1. Decision is to develop 3 mega Bulk Drug parks in India in partnership with States.
2. Government of India will give Grants-in-Aid to States with a maximum limit of Rs. 1000 Crore per Bulk Drug Park.
3. Parks will have common facilities such as solvent recovery plant, distillation plant, power & steam units, common effluent treatment plant etc.
4. A sum of Rs. 3,000 crore has been approved for this scheme for next 5 years.
5. The scheme will be implemented by State Implementing Agencies (SIA) to be set up by the respective State Governments and the target is to set up 3 mega Bulk Drug Parks.

Production Linked Incentive Scheme

1. A financial incentive will be given to eligible manufacturers of identified 53 critical bulk drugs on their incremental sales over the base year (2019-20) for a period of 6 years.
2. The scheme will be implemented through a Project Management Agency (PMA) to be nominated by the Department of Pharmaceuticals.
3. The Scheme will be applicable only for the manufacturing of 53 identified critical bulk drugs (KSMs/Drug Intermediates and APIs).