By TIOL News Service

NEW DELHI, MAY 09, 2015: WHILE answering a question in the Rajya Sabha, the Minister of State for Chemicals and Fertilisers, Mr Hansraj Gangaram Ahir, said that as per the Boston Consulting Group Report of 2013 import of Active Pharmaceutical Ingredients (APIs) during the year 2013 was approximately USD 3.5 billion of which a large share was from China. The Government had constituted a High Level Committee known as the Katoch Committee on 08.10.2013 to study and identify the APIs of critical importance and to work out a package of concessions required to build domestic production capabilities and to examine the cost implications.

The Katoch Committee had recommended establishment of Mega Parks for APIs with common facilities such as common Effluent Treatment Plants (ETPs), Testing facilities, Captive Power Plants/assured power supply by state systems, Common Utilities/Services such as storage, testing laboratories, IPR management, designing, etc., maintained by a separate Special Purpose Vehicles (SPV); a scheme for extending financial assistance to states to acquire land and also for setting up common facilities, revival of public sector units for starting the manufacturing of selected and very essential critical drugs (e.g., penicillins, paracetamol etc.); financial investment from the Government for development of clusters which may be in the form of a professionally managed dedicated equity fund for the promotion of manufacture of APIS and extending fiscal benefits to creation of the entire community cluster infrastructure and individual unit infrastructure; extension of fiscal and financial benefits to promote the bulk drugs sector; promoting stronger industry-academia interaction, synergizing R&D promotion efforts by various govt. agencies, icentivising scientists, duty exemptions for capital goods imports.

These recommendations are being examined for formulation of a Policy for Promotion of Manufacturing of Bulk Drugs, the Minister added.

While answering a question in the Lok Sabha yesterday, the MoS for Finance, Mr Jayant Sinha, said that the Government provides concessions in cess and taxes on some medicines sold in the country. At present, life saving drugs or medicines specified in the List 4 annexed to the Notification No. 12/2012-Customs dated 17th March, 2012 (Sl. No. 148) of Government of India, Ministry of Finance, Department of Revenue vide G.S.R. 185 (E) dated 17th March, 2012 and bulk drugs (chemicals) used in the manufacture of such life saving drugs or medicines are exempt from basic customs duty and excise duty/CVD. Further, certain other drugs or medicines (including life saving drugs or medicines) specified in List 3 annexed to the Notification No. 12/2012-Customs dated 17th March, 2012 (Sl. No. 147) and bulk drugs (chemicals) used in the manufacture of such other drugs or medicines attract concessional basic customs duty of 5% and Nil excise duty/CVD.

Representations seeking exemption from customs and excise duties on bulk drugs or chemicals etc are received throughout the year in Department of Revenue. They are forwarded to the Ministry of Health and Family Welfare and Department of Pharmaceuticals for examination and recommendation. At present, no proposal/recommendation foro changes in the rate of such duty has been received from Ministry of Health and Family Welfare and Department of Pharmaceuticals.