On September 1, 2022, the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers (MoC&F) granted in-principle approval to the proposals of three states viz.
Himachal Pradesh (HP), Gujarat, and Andhra Pradesh (AP) under the scheme for ‘Promotion of Bulk Drug Parks (BDPs)’ to support the Bulk Drugs manufacturing in India.

  • The financial assistance to the proposed Bulk Drug Park (BDP) in Gujarat and Andhra Pradesh will be 70% of the project cost of common infrastructure facilities.
  • For HP, being Hilly States, financial assistance will be 90% of the project cost.
  • Maximum assistance under the scheme for one Bulk Drug Park is limited to Rs 1000 crores.

About Promotion of BDPs scheme:

  • It was notified in 2020 with an outlay of Rs 3000 crore. It envisages providing assistance to three states for establishing BDPs; and aims to bring down the cost of manufacturing of bulk drugs by creation of world class common infrastructure facilities at one place with support from the Central Government.
  • This scheme will also help industry in meeting the standards of environment at a reduced cost through innovative methods of the common waste management system.
  • Under the scheme, proposals were received from 13 States. The Department of Pharmaceuticals was guided by an Advisory Committee under Chief Executive Officer, NITI (National Institution for Transforming India) Aayog in the appraisal of the proposals, based on the quantitative and qualitative methodology.

Reason behind this scheme:

India is the major producer of Active Pharma Ingredients (API) or bulk drugs in the world.India exported Bulk Drugs/ Drug Intermediates (DIs) worth Rs. 33,320 crore in FY22. However, India also imports various Bulk Drugs/ APIs for producing medicines from various countries. Most of the imports of the Bulk Drug/APIs are being done because of economic considerations.
So, in order to minimize this scenario, and to make India self-reliant in APIs and drug intermediates, the Department of Pharmaceuticals is implementing various schemes and one of the key interventions is the Scheme for BDPs.

Key Points:

  • Indian Pharmaceutical industry is the 3rd largest in the world by volume.
  • India exported pharmaceuticals worth Rs. 1,75,040 crore in FY22, including Bulk Drugs/ Drug Intermediates.
    Other interventions of the Department, in ensuring domestic manufacturing of the BulkDrugs, include.
  • Production Linked Incentive (PLI) Scheme for domestic manufacturing of DIs and APIs.
  • Under this scheme, a total of 51 projects have been approved, out of which, 14 projects have already been commissioned and started manufacturing of the drugs,

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