The ministry of chemicals and fertilizers has set up a taskforce for undertaking a comprehensive review of the official support mechanism existing for the pharmaceutical industry. The taskforce, consisting of members from the Planning Commission, health ministry and the C & F ministry, would submit its recommendations by April 30, 2005.

The main objective of the taskforce is to identify the key areas that need the support from the government. The government is also planning to set up support funds for global branding of Indian pharmaceutical products and technology upgradation of small and medium scale drug manufacturing facilities. The modalities will be worked out on the basis of the taskforce recommendations.

According to ministry sources, the finance ministry has given in-principle approval to allocate funds for technology upgradation in pharmaceutical sector. The C&F ministry funds would be an additional incentive for the drugs sector apart from the capital subsidy scheme for SMEs launched by the SSI ministry and the Drug R&D that comes under the administrative control of ministry of science & technology.

The taskforce is also studying all the TRIPS compliant provisions that are available in the Patent Laws of other countries that are essential for ensuring adequate supply of life saving drugs at affordable prices. Sources informed that the government might come out with a separate legal provision to introduce pre-negotiation of prices of patented drugs before it can be introduced in the market. "We are going through the similar provisions that are in place in other countries including the Canadian model to come out with the best mechanism for the country," sources informed. The taskforce recommendation would cover all the aspects that are affecting the industry today, they added.