The Union Government has decided to raise the investment ceiling for small-scale units manufacturing paracetamol and other nine bulk drugs from Rs 1 crore to Rs 5 crore. The sources at the Union Ministry for SSIs confirmed that the notification to this effect will be issued in the first week of March.
The other bulk drugs that have been included in the list are para amino phenol, pyrazolones, benzyl benzoate, niacinamide, methyl parabens and sodium salt, ethyl parabens and sodium salt, propyl parabens and sodium salt, calcium gluconate and aluminium hydroxide gel.
The ministry for small-scale industries had placed the draft order, which sought the increase in SSI investment ceiling in the pharmaceutical sector, in Lok Sabha in July last year. After months of silence, the ministry has now indicated that the notification is to come within a week after the announcement of the Union Budget next month.
Earlier, the ministry had de-reserved four drug intermediates namely citrates, methyl & salicylate (based on salicylate acid), glycerol phosphates and halogenated hydroxy - quinoline.
It is felt that the de-reservation of four items and raising of investment ceiling in respect of ten items will help SSI units to enhance their competitiveness both in the domestic and export markets through facilitating technological up gradation and adoption of international quality standards.