Govt assures funding drug cos for R&D

"The austerity measures of 10 per cent reduction in non- plan expenditure will in no way affect the DST's various initiatives of knowledge partnership with the private sector," Department of Science and Technology Adviser G J Samathanam said while addressing the Public Private Partnership Summit for Lifesciences Sector here today.     

Samathanam cited the DST's Drugs and Pharmaceutical Research Programme and the grants-in-aid programme announced by the government last week in this regard as a case in point.     

He said the DST has invested Rs 120 crore during 2007-08 on various projects, up from Rs 20 crore in 2004-05.     

"All funding is this sector is taken up under the plan scheme and contain guarantee against cost cutting," he said.     

The government had last week approved extension of grants -in-aid to pharmaceutical firms in a bid to promote research and development of drugs for neglected diseases such as malaria and tuberculosis. A sum of Rs 45 crore had been earmarked in the 11th Five Year Plan for the project.     

"The detailed terms of reference regarding the project is being worked out and will be released within next two months," Samathanam said.     

He said the DST's other major scheme for extending soft loans to firms would continue unhindered.

Under this scheme started in 2004-05, the department has funded various projects up to the tune of 70 per cent of the project cost at a 3 per cent simple interest and having a 10 years' repayment period.     

"The government can only act as a catalyst and it is the private sector which has to perform and help in catering to national health requirements," Samathanam said.