Context: Recently, the Union Ministery for Chemicals and Fertilizers launched four schemes of Department of Pharmaceuticals for promotion of domestic manufacturing of bulk drugs and medical devices parks in the country.
Background

• The Indian pharmaceutical industry is the third-largest in the world in terms of volume and the 14th largest in terms of value.
• India contributes 3.5% of the total medicines and drugs exported globally.
• However, India is still dependent on imports for bulk drugs.
• Bulk drugs are critical basic raw materials that are used to produce the finished dosage formulations.
• The growth of the pharmaceutical sector is contingent upon the ability to ensure the uninterrupted supply of quality bulk drugs and the capacity to upscale their manufacturing during emergency situations.
• It is therefore highly desirable to achieve self-reliance in bulk drug manufacturing.
• This scheme is promoted with a view to bring down the manufacturing cost of bulk drugs and increase competitiveness in the industry.
• Bulk drugs are also called Active Pharmaceutical Ingredients (API).
• China’s Hubei province is considered the hub of the API industry.
• Around 70% of the Indian API imports come from China.

Objectives of the scheme

• The chief objective of the scheme is to reduce the cost of bulk drug manufacturing in the country and reduce dependence on imports for the same.
• To promote setting up of bulk drug parks in the country for providing easy access to world-class Common Infrastructure Facilities (CIF) to bulk drug units located in the park.
• To help industry meet the standards of the environment at a reduced cost through innovative methods of common waste management system.
• To exploit the benefits arising due to the optimization of resources and economies of scale.

About the scheme

• The scheme envisages the creation of 3 bulk drug parks in the country.
• It is a central sector scheme with a total financial outlay of Rs.3000 Crore.
• The grant-in-aid will be 90% of the project cost in the case of North-East and hilly States and 70% in the case of other States. Maximum grant-in-aid for one bulk drug park is limited to Rs.1000 crore.
• The duration of the scheme is from 2020 to 2025.
• The parks will have common facilities such as solvent recovery plant, distillation plant, power & steam units, common effluent treatment plant, etc.
• For implementing the scheme, the respective state government will set up a State Implementing Agency (SIA).
• The SIA will be responsible for the day-to-day management of the Bulk Drug Park.