500-cr VC fund planned for pharma sector
500-cr VC fund planned for pharma sector. In a bid to provide cheaper loans to set up or upgrade manufacturing facilities, the government is planning to establish Rs 500 crore venture capital fund.
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The task force suggested that the Department of Pharmaceuticals may come up with seed capital and facilitate funding with other financial institutions for the benefit of MSME pharma units
New Delhi: In a bid to provide cheaper loans to set up or upgrade manufacturing facilities, the government is planning to establish Rs 500 crore venture capital fund.
The government is working on various proposals, including single window clearance for drug approvals, to rejuvenate the local pharma sector and make medicines more affordable. The steps were suggested by a task force formed by the Department of Pharmaceuticals (DoP) in a report submitted to Chemicals and Fertilisers Minister Ananth Kumar. The report was submitted to the ministry recently.
In its report the task force had said the DoP may come up with seed capital and facilitate funding with other financial institutions for the medium and small scale pharmaceuticals industry. The panel in the report titled 'Recommendations of the Task Force on Enabling Private Sector to lead the growth of Pharmaceutical Industry', has said DoP may come up with a pharmaceutical specific venture fund, for channelising public resources into drug design and discovery.
According to the source the department is also working on all other proposals including providing soft loans and interest subsidy to the industry as mentioned in the report of the task force. The task force also suggested that DoP may launch a scheme for giving financial assistance in the form of soft loan or interest subsidy for upgradation of selected manufacturing facilities to the industry.
The soft loan and interest subsidy is recommended for the industry to compete in the highly regulated markets of United States, Europe, Australia and the United Kingdom among other international markets.
Meanwhile, Ananth Kumar had also said that government will set up a committee chaired by Pharmaceuticals Secretary to suggest a mechanism for single-window clearance for the pharmaceuticals industry.
Kumar had also said that the government is planning to approve six pharma parks this year at an estimated investment of Rs 180 crore to promote pharmaceuticals manufacturing. The market size of India's pharmaceutical industry is estimated at about Rs 2 lakh crore.
