Schemes for bulk drug, medical device parks to attract investment of about Rs 77900 crore, says DV Sadananda Gowda
Shri Gowda informed that the schemes for development of bulk drug & medical device parks are expected to attract cumulative investment of about Rs 77900 crore and can generate about 2,55,000 employment
Delhi: Union Minister of Chemicals and Fertilizers Shri. D.V. Sadananda Gowda has said that his Department of Pharmaceuticals has taken several measures to create a suitable environment for the development of domestic capacity in the pharma sector. He said Prime Minister Sh. Narendra Modi has recently said that 'India's Pharma Industry is an asset not just for India but for the entire world. It has played a leading role in reducing the cost of medicines especially for developing countries.'
Addressing the Inaugural Session of CII's 12th MedTech Global Summit Charting the MedTech route to AtmaNirbhar Bharat, Shri Gowda said that to strengthen the country's drug security, the Government is committed to build Atmanirbharta in the pharma sector. The government has launched schemes for the development of three Bulk Drug Parks and four Medical Device Parks across the country. Apart from increasing Central assistance for the development of common infrastructure facilities in the parks, the Union Government will also extend Production Linked Incentive (PLI) to manufacturers of bulk drugs and medical devices in these parks.
The minister said the Government will provide incentives at the rate of 5 % on incremental sales for a period of five years from the Fiscal Year 2021-22 to 2025-26, with a total outlay of Rs 3420 crore. Department of Pharmaceuticals has already released evaluation criteria for the selection of units for this scheme on July 27, 2020. A time period of 120 days has been given for filing applications. He said it is the right time for companies to take advantage of this scheme.
The two-pronged strategy of incentivizing production and creation of common infrastructure will offset the higher cost of production. This will make domestic companies as competitive as their peers in foreign countries, and provide a level playing field to them. within a period of 2 -3 years, due to the right policies of the Government under the leadership of Shri Narendra Modi, the pharma sector will become AtmaNirbhar, not only in sense of meeting domestic requirements but also for fulfilling global demand of low cost - high-quality medicines and medical devices.
Shri Gowda informed that the schemes for the development of bulk drug & medical device parks are expected to attract cumulative investment of about Rs 77900 crore and can generate about 2,55,000 employment. "For the medical device sector alone, the investment could be to the tune of Rs 40000 crore with the generation of 1,40,000 new employment opportunities," he added.