Lok Sabha Question No. 2400 (UNSTARRED), answered on 2021-03-09
Subject: Atmanirbhar Pharma Companies
Ministry: CHEMICALS AND FERTILIZERS
Asked by: S.R. Parthiban

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION No. 2400 TO BE ANSWERED ON THE 9 th  March, 2021

## Atmanirbhar Pharma Companies

## 2400. SHRI PARTHIBAN S.R.:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) the steps taken to make pharmaceutical companies atmanirbhar in the country;
- (b) whether the raw materials for pharma sector are mainly imported and if so, the details thereof; and
- (c) the steps taken to increase indigenous resources in pharma sector?

## ANSWER

## MINISTER IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI D. V. SADANANDA GOWDA)

- (a) & (c): To make our country atmanirbhar in pharmaceuticals, Department of Pharmaceuticals  has  come  up  with  following  three  schemes  for  promoting  domestic manufacturing of pharmaceutical drugs including bulk drugs.
- (I) Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of  critical  Key  Starting  Materials  (KSMs)/  Drug  Intermediates  (DIs)  and  Active Pharmaceutical Ingredients (APIs) In India: Under the scheme, financial incentive will be given for manufacturing of 41 Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs). Incentives for incremental sales will be given to selected participants for a period of 6 years. The total outlay of the scheme is Rs. 6,940 crore.
- (II) Scheme for Promotion of Bulk Drug Parks: This scheme provides for grant-in-aid to 3 Bulk Drug Parks for creation of Common Infrastructure Facilities (CIF) with a maximum limit of Rs.1000 crore per park or 70% of the project cost of CIF, whichever is less. In case of North Eastern States  and Hilly States (Himachal Pradesh,  Uttarakhand,  Union Territory  of Jammu & Kashmir and Union Territory of Ladakh) financial assistance would be 90% of the project cost. The total outlay of the Scheme is Rs. 3000 crore and the tenure of the Scheme will be five years (2020-21 to 2024-25).

The  detailed  guidelines  of  above-mentioned  schemes  are  available  on  the  website (http://pharmaceuticals.gov.in) of the Department of Pharmaceuticals.

- (III)          Production  Linked  Incentive Scheme for Pharmaceuticals: The Union Cabinet recently  in  its  meeting  on  24.02.2021  approved  Production  Linked  Incentive  scheme  for Pharmaceuticals with the objective to enhance India's manufacturing capabilities by increasing

investment and production in the sector and  contributing to product diversification to high value goods in the pharmaceutical sector. One of the further objectives of the scheme is to create global champions out of India who have the potential to grow in size and scale using cutting  edge  technology  and  thereby  penetrate  the  global  value  chains.  The  outlay  of  the scheme is Rs. 15,000 crore and three categories of pharmaceutical goods will be incentivized under the scheme based on their incremental sales.  The tenure of the scheme is from FY 20202021 to 2028-29. The scheme has been notified on 3.3.2021 in the Gazette of India.

- (b):    Yes,  Sir.  As  per  Central  Drugs  Standard  Control  Organization  (CDSCO),  many  raw materials are imported from China, for manufacturing of medicines. As per available data from the various Port Offices of CDSCO, the details of the percentage of raw materials imported from China are as under:-

|   Year | Percentage (in terms of value)   |
|--------|----------------------------------|
|   2018 | 66.53%                           |
|   2019 | 72.40%                           |
|   2020 | 72.15%                           |

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