Though the allocation for the Department of Pharmaceuticals (DoP) for the next fiscal stands increased slightly in the interim budget from Rs. 228.33 crore for 2013-14 to Rs. 247.87 crore, many of the long pending schemes or aggressive expansion of the Jan Aushadhi scheme are unlikely to get a fillip next year.
However, extending some hope for the small and medium sector, Finance Minister P Chidambaram has this time included a new head for Upgradation of SMEs to WHO-GMP Standards with an allocation of Rs. 6 crore, though the industry has been asking for a substantial amount to keep the small units afloat against the rising competition.
Though the Government was planning to roll out the Jan Aushadhi stores in a big way in more States with a new business plan and increased investment, the Finance Minister has allocated only Rs. 30 crore against Rs. 25 crore of last year. Given the fact that budget allocation was cut down to Rs. 15.20 crore later at the revision stage, Rs. 30 crore will be a good amount if the department can fully utilize it.
For all the existing and new schemes, the allocation stands at Rs. 64 crore this time, without much improvement on Rs. 62.84 crore allocated last year. With many schemes remaining still on the paper, the allocation was revised to mere Rs. 17.89 crore during this fiscal year.
“Other Ongoing Schemes of Pharmaceutical: Various new schemes towards technical upgradation and R&D in the field of Pharmaceuticals are proposed to be undertaken during the 12th Plan, including Jan Aushadhi Scheme and Cluster Development Scheme for which a provision of Rs. 63 crore is allocated,” according to the budget notes.
Another new inclusion in the budget is a nominal allocation of Rs. 2 crore towards setting up of National Centre for Research and Development for NIPERs. One of the key such pending proposals is to set up the R&D Centre for bulk drugs at NIPER, Hyderabad.
The National Pharmaceutical Pricing Authority (NPPA) has got Rs. 14.07 crore for next year, against an allocation of of Rs. 11.71 in the last budget. This time, the government has specifically made an allocation of Rs. 2 crore towards the media campaigns, against the backdrop of the new pharmaceutical pricing policy and the DPCO 2013.
The total allocation for the NIPERs has been increased slightly from Rs. 93.27 crore of last budget to Rs. 108 crore this time. “National Institute of Pharmaceutical Education & Research (NIPER) has been set up at SAS Nagar (Mohali) near Chandigarh. The Institute seeks to promote excellence in the sphere of pharmaceutical education in India and to meet the current and future needs of the pharmaceutical sector in India. The provision includes Non-Plan support for day-to-day expenditure and Plan support for their ongoing Schemes and new Schemes in Pharmaceutical Education and Research as well as for six new NIPERs, one each at Ahmedabad, Hyderabad, Hajipur, Kolkata, Guwahati and Rae Bareli, one campus at Madurai has also been envisaged Rs. 108 crore stands allocated for these institutions, this includes initiation of and activities for construction of campus at Gandhinagar, Guwahati and Rai Bareili,” the budget document said.