The Department of Expenditure has given its in-principle approval to a proposal of the Department of Pharmaceuticals (DoP) to build multiple bulk drug parks for reducing dependency on raw material imports.
The availability of funds is going to be taken up with the Finance Ministry now, said an official, who did not wish to be named.
The government plans to build three bulk drugs and three medical devices parks worth Rs 60,000 crore under the public-private partnership (PPP) mode, according to Chemicals and Fertilizers Minister Ananth Kumar.
The minister, however, said the government had decided against its original bulk drug policy. Instead, states will have to come up with bulk drug parks which will help boost manufacturing of bulk drugs, he said.
Following the announcement, the Andhra Pradesh government expressed its desire to set up a bulk drug park in Vishakhapatnam but said it needed funding assistance from the Central government.
With imports of drug ingredients and intermediates from China reaching Rs 13,853 crore in 2015-16, the National Security Adviser has warned the government against over-dependence on the neighbouring country.