The Katoch committee on Active Pharmaceuticals Ingredients (APIs), constituted by the department of pharmaceuticals (DoP) last year, has recommended to the government to initiate measures for stronger industry-academia interaction by facilitating the to and fro
movement of scientists between industry and academic institutions.

The committee, which recognised the fact that investment in research and development (R&D) is essential to ensure competitive edge, further recommended for an institutional mechanism for ministry of human resources, and various science departments and agencies like DST, DBT, CSIR, ICMR etc to work together/ in synergy on R&D relevant for best procedures of production.

To further boost the API industry in the country, the committee which was constituted to formulate a long term policy and strategy for promoting domestic manufacture of APIs/bulk drugs in the country, recommended for import duty exemption on import of capital goods in respect of R&D and manufacturing of vaccines and APIs.

Innovation should be measurable and awards to the scientists and industry who contribute to the development of improved
processes relevant to bulk drug industry should be made, the committee recommended and further said that the technology development financing should also be repaid.

On providing assistance on machines equipment, the committee recommended that the incentives to the manufacturers for setting up large plants and imports of technology that will reduce the cost of production need to be worked out. Allocation of adequate quantity of coal and electricity at concessional rates may also be considered. A scheme on the pattern of the modified special incentive package for IT hardware, etc. may be considered, the committee in its report said.

In order to formulate a long term policy and strategy for promoting domestic manufacture of APIs/bulk drugs in the country, a high level committee headed by Dr. V.M. Katoch, the then secretary, department of health research (DHR) was set up by the DoP last year which submitted its report in February, 2015. The committee has made sweeping recommendations for revival of API manufacturing in India including tax free status to cluster developers and cluster participants for 15 years.