The long wait for a separate export promotion council for drugs and pharmaceuticals (Pharmexcil) is likely to end within three months as the industry associations are hurrying to raise the necessary corpus fund needed for the setting up of the council within a month from now. The industry has already generated half of the required Rs 3 crore, it is learnt.

With the rest of the amount expected to be ready in a month, the concerned industry associations will request the Union Ministry of Commerce and Industry to go ahead with the official work leading to a notification declaring the birth of the new council.

It is also certain that the new Council will have its headquarters at Mumbai and registered office at Hyderabad.

The lack of consensus between the Indian Drug Manufacturers Association (IDMA) and Bulk Drug Manufacturers Association (BDMA) on the location of the head quarters was one of the major reasons for the delay in the formation of the council. Inability of the associations to raise the required amount was another problem. Now that both issues are solved, there should not be any further delay, sources pointed out.

The new initiative is totally industry driven and the governments of Andhra Pradesh and Maharashtra, who had vied for the headquarters of the council in respective state capitals, do not have an active role in the fund raising programme. The 10 acres of land and Rs 3 crore promised by the government of AP cannot be utilized for the purpose now, as it was valid only if Hyderabad was chosen as the head quarters of the Pharmaxcil. The token amount of Rs 5 lakh offered by the government of Maharashtra is not going to be of substantial help either.

However, currently the industry has taken a stand that the corpus would be raised among themselves by way of loans from individual companies and also with a likely help from the Exim Bank of India.

Meanwhile the Union Commerce Ministry is awaiting the written assurance from the associations on the availability of the land, funds and also location.

The formation of Pharmexcil has been a long-standing demand of industry associations like IDMA, BDMA, Indian Pharmaceutical Association (IPA) and the Organisation of Pharmaceutical Producers of India (OPPI). , Accepting the demand from the industry, the government cleared the decks for the council last year on the condition that the industry should raise the initial fund for the establishment of Pharmexcil. The Ministry had asked the associations to suggest a location and also forward a corpus amount of Rs three crore towards the setting up of the council.