Katoch panel moots mega parks for bulk drug manufacturing

A government panel on bulk drugs industry has suggested setting up of mega parks to manufacture active pharmaceutical ingredients (APIs) with common facilities like testing, power and effluent treatment plants.
It has also recommended fiscal and financial benefits to promote the sector.
The Katoch Committee, set up by the government to study and identify APIs of critical importance and suggest ways to reduce India's dependence on their imports, has given a road map for the growth of bulk drug industry, Parliament was informed today.
"The Katoch Committee has inter-alia recommended establishment of Mega Parks for APIs with common facilities such as common effluent treatment plants (ETPs), testing facilities and captive power plants/assured power supply by state sysytems..., " Minister of State for Chemicals and Fertilisers Hansraj Gangaram Ahir said in reply to a question in Lok Sabha.

It has also suggested establishment of common utilities and services such as storage, testing laboratories, IPR management, designing, guest house/accommodation etc maintained by a separate special purpose vehicle (SPV), he added.
The committee has also recommended "a scheme for extending financial assistance to states to acquire land and also for setting up common facilities", Ahir said.

"Revival of public sector units for starting the manufacturing of selected and very essential critical drugs (eg penicillins, paracetamol etc," are some of the other suggestions, he added.
The panel has also suggested financial investment by the government to develop clusters, which may be in form of a professionally managed dedicated equity fund, to manufacture APIs, Ahir said.

Besides, it has recommended extending fiscal benefits for the creation of entire community as well as individual unit infrastructure.
The government had constituted the committee, headed by the then Health Research Secretary V M Katoch, on October 8, 2013.