On the sidelines of an annual event of the Indian Drug Manufacturers’ Association, a senior government official said plans had been readied in this regard. “If someone wants to invest in the sector, he has to go to multiple departments — state government, food and drug commissioner, health authorities, environment ministry, etc. There is no mechanism that ensures the issues raised by the sector are accounted for and followed up. Unless we have a single-window assistance cell at the DoP, this cannot be achieved,” he said. A new Bureau of Pharmaceuticals is being set up, to be in action by March.
Advertisements have been issued for officers to staff it —around seven experts from different fields are being inducted, with three managers. “The Invest India help desk, too, might start reporting to the Bureau eventually. This would facilitate the routing of all investment queries through the DoP itself,” said the official.
The Bureau would effectively facilitate or handhold an aspiring entrepreneur. If the latter has not got the needed clearance from any ministry or state, Bureau or DoP would try to identify the problem and follow-up. "There could be monthly or quarterly review meetings with departments," the official added.
The Bureau would also help anyone aiming to expand an existing facility.
"We plan to implement what can be called a track and trace mechanism for one's issues or complaints. Once an investor brings a certain issue to our notice, his complaint or issue would be given a token and he can then track its progress online, as it progresses from one department to another," he explained.
"If such a thing is implemented well, this could be truly helpful for medium and small scale enterprises, which do not have the wherewithal to run from pillar to post to secure clearances. It would significantly reduce red tapism," said a Gujarat-based contract manufacturing player, who says environment clearance for expansion is a key worry.
"Pharma is considered a polluting industry, especially bulk drug makers. Getting state and central pollution control board approvals in place is a major challenge. At times, the delays result in opportunities lost," he added.
Foreign direct investment in pharma fell from $1.01 billion (Rs 7,100 crore) in 2017-18 to only $266 million (Rs 1,900 crore) in 2018-19.
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