The Centre has approved a proposal to extend grant-in-aid to Indian pharmaceutical industry for R&D projects involving clinical trials phase I, II and III to develop new drugs for neglected diseases like kala-azar, malaria, filariasis, and tuberculosis.

To be implemented by the Department of Science and Technology, the programme is likely to go on stream formally from September as the modalities of the same were being worked out now, sources said. However, the project proposals would be welcomed anytime from now, a DST official added.

The proposal is an extension of the existing Drugs and Pharmaceuticals Research Programme (DPRP) under which, the DST has been extending financial support to collaborative R&D projects with the private players, setting up national facilities and giving soft loans to the pharma companies.

An amount of Rs 45 crore has been proposed for the programme for the 11th Five Year Plan period, to begin with. However, the allocation would be enlarged depending on the proposals and needs, sources said. The proposal was cleared by the Government recently in line with the recommendation by the Parliamentary Standing Committee on Science and Technology, Environment and Forest. Pharmaceutical associations have also been pressing for such financial assistance to develop drugs to fight the neglected diseases of the tropical region.

Sources in the DST said that the grant-in-aid would be restricted only to Indian pharma companies and there were already a lot of companies and institutes which have taken up the drug development in these neglected areas. They would be eligible for financial support in any phase of clinical trials.

The government was of the view that there is a need to tap resources, both financial as well as intellectual, of drug industries and to initiate drug development under public private partnership specially to develop drugs for neglected diseases. The population needing these drugs is primarily from poorer society of the country with very little purchase power.

"These diseases being endemic to tropical conditions and the business turnover of the drug developed for these diseases are becoming too small comparing to other diseases like cardiovascular, anti-lipidemic and metabolic disorders, even the MNCs do not find investing on R&D on these neglected diseases of tropical region as very profitable and viable proposition,'' sources said.