The government will be setting up a Rs 500 crore fund for small and medium players in the pharmaceutical sector for upgradation of their manufacturing facilities to boost drug production in the country.
“Our department is in the process of setting up a pharmaceutical upgradation fund with corpus of about Rs 500 crore. The fund will provide loans through some bank to the small and medium players in the sector for upgradation of their technology and quality,” Pharmaceuticals Secretary V K Subburaj said.
He was speaking on the sidelines of an event organised here by PHD Chambers.
The fund is being set up following recommendations submitted by a task force on pharmaceutical sector last month to Chemicals and Fertiliser Minister Ananth Kumar.
The task force in its report titled ‘Recommendations of the Task Force on Enabling Private Sector to lead the growth of Pharmaceutical Industry’ had suggested that the Department of Pharmaceutical may come up with seed capital and facilitate funding with other financial institutions for the medium and small scale players in the pharmaceuticals industry.
“The Department of Pharmaceuticals is also in final stages to formulate a cabinet note for Bulk Drugs Policy and it is likely to come up in next two months,” Subburaj said.
The minster had earlier said that the government would set up a committee chaired by Pharmaceuticals Secretary to suggest a mechanism for single-window clearance for the pharmaceuticals industry.
Kumar had also said that the government is planning to approve six pharma parks this year at an estimated investment of Rs 180 crore to promote pharmaceuticals manufacturing.