Lok Sabha Question No. 2848 (UNSTARRED), answered on 2023-03-17
Subject: Centrally Sponsored Schemes in Telangana
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Gaddam Ranjith Reddy

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

LOK SABHA UNSTARRED QUESTION No. 2848 TO BE ANSWERED ON 17 th  March, 2023

Centrally sponsored Schemes in Telangana

## 2848. DR. G. RANJITH REDDY:

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

- (a) the details of Centrally Sponsored Schemes and Central Sector Schemes being implemented by the Government in the State of Telangana during the last five years and the current year, year-wise, scheme-wise and district-wise;
- (b) the details of funds allocated, sanctioned, released and utilized for each of the above scheme during the last five years and the current year, year-wise, scheme-wise and district-wise;
- (c) the details of physical targets set and achieved while implementing the above mentioned schemes during the last five years and the current year, year-wise, scheme-wise and districtwise;
- (d) whether the Government has found any shortcomings while implementing above schemes and if so, the details thereof and the measures taken by the Ministry to fix those shortcomings;
- (e) whether there is time and cost overrun on any of the above mentioned schemes; and
- (f) if so, the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI BHAGWANTH KHUBA)

(a)  to  (f):  The  three  departments  under  the  Ministry  of  Chemicals  and  Fertilizers  viz.  the Department  of  Pharmaceuticals,  the  Department  of  Chemicals  and  Petrochemicals  and  the Department of Fertilizers implement Central Sector schemes in the State of Telangana whose details are given at Annexure. Further, these 3 Departments do not implement any Centrally Sponsored Schemes.  There is a system in place for monitoring these schemes,  as per the institutional arrangements as mandated under the respective scheme guidelines. Reviews are conducted for ensuring and facilitating the speedy implementation of the schemes by way of addressing various administrative, technical and financial issues.

## A. Central Sector schemes implemented by Department of Pharmaceuticals in the State of Telangana.

Department of Pharmaceuticals implements following Central Sector Schemes to encourage domestic manufacturing of Pharmaceutical drugs including bulk drugs and medical devices to reduce import dependence and to establish a dominant position in the global market. The details of these schemes implemented in the State of Telangana are as below: -

- i. Under  the 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 , with a financial outlay of Rs. 6,940 crores and the tenure from FY 2020-2021 to FY 2029-30, the financial incentive is  planned to be provided for 41 identified products. A total of 51 applications have been selected under the scheme and out of these, 21 projects have been commissioned. The FY 22-23 is the first year of production under the scheme. Out of these 51 projects, 15 projects are located in the Telangana State in the districts viz. Nalgonda, Hyderabad, Kamareddy, SangaReddy and Yadadri districts.
- ii. Production Linked Incentive Scheme for Pharmaceuticals , with a financial outlay Rs. 15,000 crores and the tenure from FY 2020- 2021 to FY 2028-29, provides for financial incentive to 55 selected applicants for manufacturing of pharmaceuticals for a period of six years.  The FY 22-23 is the first year of production under the scheme. So far, an incentive amount of Rs.363 Cr has been released under the scheme. Under the scheme, a total of 87 manufacturing and R&D locations of the selected applicants are located in the Telangana State, in the districts viz, Nalgonda, Hyderabad, Kamareddy, Mahabubnagar, Medak, Medchal-Malkajgiri, Ranga Reddy, SangaReddy and Yadadri districts.
- iii. Production Linked Incentive (PLI) Scheme for Promoting Domestic Manufacturing of Medical Devices , with a financial outlay of Rs. 3,420 Cr and with the tenure from FY 2020-21 to FY 2027-28, provides for financial incentive to 26 (21 Category -A and 5 Category -B) selected applicants for manufacturing of medical devices covered under the  four  Target  segments  of  the  scheme. 14  projects  have  been  commissioned.  One project is located in the Telangana State (Medak District).
- iv. The Department implements the scheme of Strengthening of Pharmaceutical Industry (SPI) , with a financial outlay of Rs.500 crores and the tenure from FY 2021-2022 to FY  2025-26  with  three  sub-schemes  to  provide  infrastructure  support  for  pharma MSMEs in clusters and to address the issues of technology upgradation of individual pharma  MSMEs  and  to  facilitate  growth  and  development  of  Pharmaceutical  and Medical Devices Sectors through study/survey reports, awareness programs, creation of  database,  and  promotion  of  industry.    Under  the Assistance  to  Pharmaceutical Industry  for  Common  Facilities  (API-CF)  sub-component  of  SPI  scheme ,  two projects are approved in the State of Telangana. Under Pharmaceutical and Medical Devices Promotion and Development Scheme (PMPDS) sub-component, an international convention viz. Bio-Asia, organized by the Telangana State was supported in Feb 2023 by the Department with the grant-in-aid of Rs.20 lakhs under the scheme.
- v. Pradhan  Mantri  Bhartiya  Janaushadhi  Pariyojana  (PMBJP)  is  implemented  through Pharmaceuticals & Medical Devices Bureau of India (PMBI under the administrative control of Department of Pharmaceuticals, with an objective of making quality generic medicines available at affordable prices to all especially the poor and the deprived ones.
- i. Under the scheme, dedicated outlets known as Pradhan Mantri Bhartiya Janaushadhi  Kendras  (PMBJKs)  are  opened  all  over  the  country  to provide generic medicines to the masses.
- ii. The  scheme  has  made  an  impact  on  common  masses  by  providing quality medicines at affordable prices to all especially for the poor and the deprived ones. Further, it provides self-employment with sustainable  and  regular  earnings  and  generate  employment  at  various levels.
- iii. Till  28.02.2023,  about  9,182  PMBJKs  have  been  opened  across  the country, out of which 179 PMBJKs have been opened in the state of Telangana as on 28.02.2023. District-wise list of PMBJKs opened in Telangana State is given below.

| Number of PMBJKs opened in Telangana (District-wise) as on 28.02.2023   | Number of PMBJKs opened in Telangana (District-wise) as on 28.02.2023   | Number of PMBJKs opened in Telangana (District-wise) as on 28.02.2023   |
|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|
| Sl. No.                                                                 | Name of District                                                        | Number of PMBJKs                                                        |
| 1                                                                       | Adilabad                                                                | 7                                                                       |
| 2                                                                       | Bhadradri Kothagudem                                                    | 2                                                                       |
| 3                                                                       | Hanumakonda                                                             | 6                                                                       |
| 4                                                                       | Hyderabad                                                               | 18                                                                      |
| 5                                                                       | Jagitial                                                                | 11                                                                      |
| 6                                                                       | Jangoan                                                                 | 8                                                                       |
| 7                                                                       | Jayashankar Bhupalapally                                                | 4                                                                       |
| 8                                                                       | Jogulamba Gadwal                                                        | 6                                                                       |
| 9                                                                       | Kamareddy                                                               | 1                                                                       |
| 10                                                                      | Karimnagar                                                              | 3                                                                       |
| 11                                                                      | Khammam                                                                 | 2                                                                       |
| 12                                                                      | Kumuram Bheem Asifabad                                                  | 3                                                                       |
| 13                                                                      | Mahabubabad                                                             | 2                                                                       |
| 14                                                                      | Mahabubnagar                                                            | 8                                                                       |
| 15                                                                      | Mancherial                                                              | 6                                                                       |
| 16                                                                      | Medak                                                                   | 1                                                                       |
| 17                                                                      | Medchal Malkajgiri                                                      | 24                                                                      |
| 18                                                                      | Mulugu                                                                  | 2                                                                       |
| 19                                                                      | Nagarkurnool                                                            | 3                                                                       |
| 20                                                                      | Nalgonda                                                                | 2                                                                       |
| 21                                                                      | Narayanpet                                                              | 1                                                                       |
| 22                                                                      | Nirmal                                                                  | 5                                                                       |
| 23                                                                      | Nizamabad                                                               | 7                                                                       |
| 24                                                                      | Peddapalli                                                              | 5                                                                       |
| 25                                                                      | Rajanna Sircilla                                                        | 1                                                                       |
| 26                                                                      | Ranga Reddy                                                             | 19                                                                      |
| 27                                                                      | Sangareddy                                                              | 4                                                                       |
| 28                                                                      | Siddipet                                                                | 3                                                                       |
| 29                                                                      | Suryapet                                                                | 2                                                                       |
| 30                                                                      | Vikarabad                                                               | 4                                                                       |

| 31    | Wanaparthy          |   1 |
|-------|---------------------|-----|
| 32    | Warangal            |   7 |
| 33    | Yadadri Bhuvanagiri |   1 |
| Total | Total               | 179 |

## B. Central Sector schemes implemented by Department of Chemicals and Petrochemicals in the State of Telangana.

-  Department of Chemicals & Petrochemicals implements the Central Sector Scheme, viz. New Scheme of Petrochemicals [ Sub-Scheme: Scheme for setting up of Centres of Excellence (CoE) ] at CSIR-Indian Institute of Chemical Technology (IICT), Hyderabad.
-  The CoE was approved on 4 th  December, 2020, with a total project cost of Rs. 9.72 crore, out of which Rs.4.86 crore will be provided by the Department as grant-in aid.
-  Till date, the Department has released Rs.2.00 crore on 26.02.2021 as 1 st installment for the CoE.
-  The CoE is under implementation and the R&D outcomes can only be provided once it is completed.
-  There is no cost overrun in the CoE.  However, there is time overrun due to various restrictions imposed during the COVID pandemic.

## C. Central Sector schemes implemented by Department of Fertilizers in the State of Telangana

- i. The  Department  of  Fertilizers  is  implemented  Nutrient  based  subsidy  policy  w.e.f 01.04.2010  for  Phosphatic  and  Potassic  (P&K)  fertilizers  which  is  Central  sector scheme now. Under it, a fixed amount of subsidy, decided on annual/semi-annual basis, is provided on subsidised P&K fertilizers depending on their nutrient content. Under the scheme, MRP is fixed by fertilizer companies as per market dynamics at reasonable level which is monitored by the government.
- ii. Further,  the  Department  of  Fertilizers  is  not  implementing  any  other  Centrally Sponsored Scheme or Central Sector Scheme specific to state of Telangana. However, subsidized urea at statutorily notified MRP is provided to the farmers across the country including Telangana under Urea Subsidy Scheme which is a Central Sector Scheme. The  Scheme  is  wholly  financed  by  the  Government  of  India  through  Budgetary Support. Urea Subsidy Scheme has three components, i.e., Indigenous Urea, Imported Urea and Uniform Freight Subsidy. Indigenous urea subsidy is administered to the urea units towards indigenous urea production. Imported Urea subsidy is directed towards imports made to bridge the gap between assessed demand and indigenous production of urea in the country. Both components also include freight subsidy for movement of urea across the country under the Uniform Freight Subsidy Policy.
- iii. Under Urea Subsidy Scheme , Urea is presently provided to the farmers at a statutorily notified Maximum Retail Price (MRP). The MRP of 45 kg bag of urea is Rs.242 per bag (exclusive of charges towards neem coating and taxes as applicable). The difference between the delivered cost of urea at farm gate and net market realization by the urea units is given as subsidy to the urea manufacturer/importer by the Government of India. Accordingly, all farmers including the farmers of State of Telangana are being supplied urea at the subsidized rates. The details of funds allocated, sanctioned, released and utilised for each of these schemes during the last five years are as follows:

## Subsidy on Urea during the last 5 years

| Sl. No   | Fertilizer      |   2017-18 Expenditure |   2018-19 Expenditure |   2019-20 Expenditure |   2020-21 Expenditure |   2021-22 Expenditure |
|----------|-----------------|-----------------------|-----------------------|-----------------------|-----------------------|-----------------------|
| 1        | Indigenous Urea |               36973.7 |               32189.5 |                 43050 |               68807.4 |               54619.7 |
| 2        | Import of Urea  |                9980   |               17155.4 |                 14049 |               25049.6 |               50250.4 |
| A        | Total (1+2)     |               46953.7 |               49344.9 |                 57099 |               93857   |              104870   |

## (Rs. In crores)

The  details  regarding  indigenous  production  of  urea  and  import  of  urea  to  meet domestic requirement are as follows:

## Urea production during last 5 years

## LMT= Lakh Metric Tonne

| Year    |   Production (In LMT) |   Import (In LMT) |
|---------|-----------------------|-------------------|
| 2017-18 |                240.23 |             59.75 |
| 2018-19 |                238.99 |             74.81 |
| 2019-20 |                244.55 |             91.23 |
| 2020-21 |                246.03 |             98.28 |
| 2021-22 |                250.72 |             91.36 |

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