INR 3000 cr fund for API units proposed
With the supply of active pharmaceutical ingredients (APIs) sourced from China dwindling each day, the Department of Pharmaceuticals (DoP) has proposed the creation of Rs 3,000 crore corpus for companies to establish fermentation or API units to boost domestic manufacturing in India. Those familiar with the development told reporters that the government will provide financial incentive to those pharma companies ready to invest Rs 500 crore in an existing or new plant.
Ever since the coronavirus started spreading, the government had been deliberating ways to encourage domestic manufacturing of APIs to counter a potential shortage of bulk drugs and intermediates in the future. The department has already presented the outlines of the scheme (formulated in consultation with government think tank Niti Aayog) to the Prime Minister Office (PMO) and got an approval from the Expenditure Finance Committee.