The department would be funding to upgrade the existing state testing laboratories and also help set up new inhouse quality control labs for GMP compliance using standards of USFDA or WHO guidelines, Ayush's joint secretary Shiv Basant told PTI.
The department initially allocated Rs 26 crore and if the manufacturers change their attitude to improve the standards and quality of their products to world standards, "we are ready to allocate more money," he said.
"We have asked the manufacturing units to apply for funds and the process is on. Depending on the response, we will definitely increase the allocation," he added.
There are 8,000 manufacturing units in the country. The department is also encouraging common testing labs for smaller Ayush manufacturing units where a cluster of 15-20 units can have a common quality control labs and common facility for GMP compliance, he said.
Separate amount would also be spent on common facilities for raw materials standardisation and quality control of finished products at locations having cluster of Ayush industries. Three such clusters have been identified this year, these are at Nashik, Pune and Trissur, the joint secretary said.
The department is also trying to inculcate change in attitude of Ayush manufacturers and "unless the attitude changes towards GMP, they (manufacturers) will have to face the problem of even shutting down once the Central Drug Authority (CDA) comes into existence, Basant said.
CDA Bill is pending in the Parliament and at this stage, the manufacturing units should take advantage of the facility provided by Ayush department, Basant said. "We will even crack the whip if necessary if the units do not comply with the GMP norms as soon as possible," he said.
In the general budget, Rs 534 crore was allocated for Indian medicine, against last year's Rs 488 crore and inspite of only Rs 390 crore being utilised till March 2008.
However, there was a cut in the allotment for assistance to accredited Ayush centres of excellence in non-governmental and private sector engaged in Ayush education, research, drug development, clinical trial and folk medicines the department sources said.
The government had earmarked Rs 7 crore last year but only Rs 3 crore was spent. This may have prompted the finance minister P Chidambaram to reduce the allocation to Rs 4 crore this year, sources added.
