The Finance Ministry has expressed its reservation in creating a large number of additional posts for the proposed Central Drug Authority of India and suggested an outsourcing model for some functions of the authority, as being done by the National Highways Authority of India, it is learnt.

The Department of Expenditure under the Finance Ministry also has made it clear that it would not be in a position to extend budgetary support for the administration and operational purposes of the proposed CDAI which is meant to streamline the manufacturing licensing in the pharma sector at the national level, reliable sources said.

However, the Health Ministry has rejected the possibility of outsourcing, describing that most of the functions of CDAI would be of statutory nature. And the operating expenses of the CDAI would be met through the projected cash flows coming by way of fees, according to the health ministry.

The proposed CDAI would require at least 100 additional personnel to start with. The proposed strength of the Authority would be 196, against the present number of sanctioned posts of 82. Interestingly out of the total sanctioned 82 posts, as many as 29 posts are vacant in the present national drug controlling machinery.

Besides raising the level of the DCGI from the grade of joint secretary to that of additional secretary, the CDA would have two additional drug controllers one exclusively for Ayush and one for the general matters in the rank of joint secretary. Three additional joint drug controllers to man the four zonal offices, two additional posts of DDCs for the proposed divisions and to man the upgraded zonal offices, 12 additional posts of ADCs for the proposed 10 divisions are also planned among the new additions.

The Finance Ministry is not very much in favour of additional posts which would lead to an extra burden of Rs 3 crore as salaries every year. But it has agreed to go into a separate proposal for creating the posts later.

The Department of Personnel and Training has also sought details on the filling up of the posts vis-à-vis the existing staff under the CDSCO. It said the process of recruiting officials was not clear as per the CDAI proposal, sources said.

Newly constituted bodies formulate their recruitment rules (RR) and develop own cadres. But formulation of RR takes time and the autonomous bodies can get exemption from the Department of Pension and Pensioners' Welfare to immediately absorb the required staff. And the health ministry is planning to seek this exemption in due course of time with the passage of the bill to set up the CDAI. The bill is now under the consideration of the Parliamentary committee attached to the health ministry.