Domestic companies investing in producing 53 crucial active pharmaceutical ingredients (APIs) will be getting an incentive of Rs 10 crore each from the government. India is the third-largest pharmaceutical industry country in the world but the domestic drug industry is dependent on imports from China.
This production-linked incentive scheme of providing 10,000 crores is to kick back the manufacturing of critical bulk drugs domestically and will be given to companies that are APIs approved by the cabinet in March 2020.
There are certain criteria that need to be followed to avail the perks of this scheme. Also, try to keep in mind a few things to avoid any fortification of the scheme.
Who Will Be Eligible To Avail The Benefits Of The Scheme?
Only those companies will be getting the benefit of this scheme who are investing in greenfield plants for the manufacturing of 53 crucial APIs of Anti-TB drugs, Vitamins, Steroids, etc with the rider to supply to domestic drug makers only. This scheme seeks to reduce dependency on China and ensure a sufficient supply of these bulk drugs and APIs domestically. This scheme is for domestic purpose and domestic consumption only,” a government official said on anonymity condition.
The official also said, “This scheme also offers an incentive of Rs 720 crore annually for fermentation of crucial products including amino cephalosporanic acid 7-ACA (used in manufacturing antimicrobial drugs), penicillin G (used to manufacture antibiotics), erythromycin thiocynate (anti-infectives), and clavulanic acid (to treat bacterial infections).”
How To Claim The Incentives?
The pharmaceutical department formed a technical committee to discuss the contour of the scheme with the stakeholders last month. For the speedy benefits of this scheme, the government offers to release funds within 60 days of claim receipt. The firm’s production cost less than API’s and bulk drug import prices will be given priority.
“If a manufacturer doesn’t make any investment within six months from the approval date, the bank guarantee will be forfeited, and manufactured won’t be able to enjoy the perks of the scheme,” said the official. The government also propose of production of 2 two bulk drugs park and one intermediate park with investment incentive of up to Rs 1000 crore each.