Aurobindo Pharma, KAPL get nod for promotion of manufacturing bulk drugs

The government has given approval to drug firms includingAurobindo Pharma and Karnataka Antibiotics & Pharmaceuticals under the PLI scheme for promotion of domestic manufacturing of critical bulk drugs.

The Production Linked Incentive (PLI) scheme aims at promotion of manufacturing of critical key starting materials (KSMs)/drug intermediates and APIs in the country.

The setting up of plants under the scheme will lead to total committed investment of Rs 3,761 crore by the companies and employment generation for around 3,825 people,the Ministry of Chemicals and Fertilizers said in a statement.

The applications of Aurobindo Pharma (through Lyfius Pharma) have been approved for setting up plants for the production ofPenicillin G, and 7-ACA, with committed production capacity of15,000 MT and2,000 MT, respectively. The committed investment for Penicillin G is Rs1,392 crore, and for 7-ACA isRs 813 crore, it added.

The approval has also been given to Aurobindo Pharma (through Qule Pharma) for setting up plant for production ofErythromycin Thiocyanate (TIOC), with committed production capacity of1,600 MT at a committed investment of Rs834 crore.

Karnataka Antibiotics & Pharmaceuticals Ltd (KAPL), a Government of India enterprise, has been accorded the approval for production of 7-ACA, with committed production capacity of 1,000 MT at acommitted investment of Rs 275 crore, the statement said.

Kinvan Pvt Ltd has also been given the approval for setting up the production facility for clavulanic acid, with committed production capacity of 300 MT at a committed investment of Rs447.17 crore, it added.

"The commercial production is projected to commence from April 1, 2023 and the disbursal of production linked incentive by the Government over the six years period would be up to a maximum of Rs 3,600 crore. Setting of these plants will make the country self-reliant to a large extent in respect of these bulk drugs," the ministry said.

With an objective to attain self-reliance and reduce import dependence in critical bulk drugs -KSMs/ drug intermediates and active pharmaceutical ingredients (APIs), Department of Pharmaceuticals had launched a PLI scheme.

The PLI scheme aims at promotion of domestic manufacturing of drugs/KSM/APIs by setting up greenfield plants with minimum domestic value addition in four different target segmentswith a total outlay of Rs 6,940 crore for the period 2020-21 to 2029-30, it added.

"The Target Segment-I includes 4 eligible products, viz., Penicillin G; 7-ACA; Erythromycin Thiocyanate (TIOC) & Clavulanic Acid, in which the country is presently fully import dependent, were considered on priority as per the decided evaluation and selection criteria," the statement said.

Further, applications under the other three segments are proposed to be taken up for approval in the next 45 days, it added.