The Central government has given three months time to the pharmaceutical industry associations to register Pharmexcil, a separate export promotion council for drugs and pharmaceuticals. The associations will have to raise Rs three crores as a corpus, set up a committee and finalise bylaws as per the model drawn by the central government within this time frame.
The Union Ministry of Commerce and Industry has communicated the decision to all major pharmaceutical associations last week. According to official sources, the in-principle nod given to register the council would get lapsed if not utilized within three months.
Pharmexcil has been a long time dream of Indian pharmaceutical industry, with Hyderabad based Bulk Drug Manufacturers Association (BDMA) and Indian Drug Manufacturers Association (IDMA), Mumbai showing equal enthusiasm in fulfilling the dream. However, the associations failed to raise the necessary corpus from within their members, thereby delaying the formation of the council. The fund mobilization has been progressing at a snail's pace and it has to be seen whether the recent communication is to bring in any results.
Meanwhile, the BDMA has managed to get a re-affirmation from the government of Andhra Pradesh to sanction Rs three crore towards the formation of Pharmexcil, provided the council is located at Hyderabad.
However, the associations had decided to have the headquarters of the new council at Mumbai with its registered office at Hyderabad. Ministry sources also confirmed the same.