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.
- The Indian pharmaceutical industry is the 3rd largest in the world by volume.
- However, despite this achievement, India is significantly dependent on import of basic raw materials, viz., Bulk Drugs that are used to produce medicines.
- In some specific bulk drugs, the import dependence is 80 to 100%.
- 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
- Decision is to develop 3 mega Bulk Drug parks in India in partnership with States.
- Government of India will give Grants-in-Aid to States with a maximum limit of Rs. 1000 Crore per Bulk Drug Park.
- Parks will have common facilities such as solvent recovery plant, distillation plant, power & steam units, common effluent treatment plant etc.
- A sum of Rs. 3,000 crore has been approved for this scheme for next 5 years.
- 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
- 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.
- The scheme will be implemented through a Project Management Agency (PMA) to be nominated by the Department of Pharmaceuticals.
- The Scheme will be applicable only for the manufacturing of 53 identified critical bulk drugs (KSMs/Drug Intermediates and APIs).