The move to set up a Rs.10,000 crore venture fund  to incentivise pharmaceutical drug discovery and innovation is likely to be further delayed as the Department of Pharmaceuticals has extended the date for choosing an advisor for the same.

The Department had already invited  bids on July 25 for selecting the advisor and the last date for submission of tenders was August 16. Now it  has extended the date  till September 27, amid indications that the proposal is going to be delayed further. While mooting the proposal, even the government officials were apprehensive about the response from the industry on joining the venture fund.

Though the sources claimed that the extension was to allow more players to participate in the bidding, the observers felt that there would not be sufficient response to the idea and it prompted the government to postpone the deadline.

``The last date for submission of Tenders was 16th August, 2010. NIPFP, in consultation with Department of Pharmaceuticals for ensuring competitive tendering process, has decided to extend the last date for submission of tender by another four weeks. The final date of submission of tender will now be 27 September, 2010. All other conditions in the tender will remain unchanged, ‘’ the notice by the DoP said.

Meanwhile, Minister of State for Chemicals and Fertilisers Srikant Kumar Jena told the Parliament recently that the National Institute of Public Finance and Policy was still preparing details of the fund. The proposed funding of Rs 10,000 crore, which includes substantial contribution from the private pharma industry under the public private partnership model, is aimed at creating a favourable environment for drug innovation in the country and to make India a hub for new drug discoveries.

Last year, the Department of Pharmaceuticals had prepared a white paper on promoting research and development funding in the country, and submitted the proposal to the Prime Minister's Office for approval. As per the proposal, the government intends to undertake pro-active steps on four fronts -- building infrastructure for talent and research, encouraging public-private partnerships in infrastructure development, providing financial incentives to encourage innovation, and shaping a favourable regulatory environment.