Separate dept likely for pharma sector

State government may soon consider pharma industry's plea

The Andhra Pradesh government may be persuaded to set up a separate department purely focussed on the needs of the pharmaceutical industry. The pharmaceutical industry, the big brother of the IT industry in Andhra Pradesh, is apparently in talks with the state government to set up a separate department for the industry on the lines of the IT and Communications department.

The Congress government led by Y S Rajasekhara Reddy is said to have expressed its willingness to consider its plea and the industry is keenly awaiting the formation of the department.

The coming days will see a concerted campaign by the industry to pursue its demand with the state government, industry sources said.

Andhra Pradesh is internationally known for its chemical synthesis and process engineering skills.

Pharma industry sources pointed out that even in the absence of any organisational support from the successive governments during the last decade, the pharmaceutical and the healthcare industry thrived in the city, which has come to be known as the 'Bulk Drug Capital of India' and 'Healthcare Capital of India'.

At present, the state has over 2,500 pharma companies and is home to two of the top five top pharma companies like Dr Reddy's Laboratories and Aurobindo Pharmaceuticals Limited.

The state, at present, accounts for around 40 per cent of the size of the pharmaceutical industry at over Rs 12,000 crore.

For example during 2000-01, India produced $1.66 billion worth bulk drugs and $3.9 billion formulations. Of this, Andhra Pradesh accounted for $462 million worth bulk drugs and $1.15 billion worth formulations. The state exports over $500 million of pharma products. Thus the state is fast emerging as the pharmaceutical capital of India, sources said.

Now, with the apex body of the pharmaceutical industry "� the Pharmaceutical Exporters Promotion Council of India (Pharmexcil) "� also headquartered in the city, there is a need for the government to explore ways to build a strong and globally competitive pharmaceutical industry in the city.

This could be facilitated if there is a separate department to handle the issues concerning the industry, they said.

Speaking of the potential of the government's measures to proactively develop an industry, the sources said the IT industry could not have flourished without the creation of a separate IT & Communications department, headed by a principal secretary who is aided by secretaries and joint secretaries.

A vision document projects that the state will leverage its strong position to emerge as the next global hub of pharmaceuticals with a share of around $8-10 billion by 2010 and $15-20 billion by 2020. For this to fructify, the government needs to set up a separate department as for the IT&C industry, the pharma industrialists feel.