Growth rate of bulk drug production is likely to be 10 per cent, the group adds. The group has suggested that imports of bulk drugs (CIF value) be restricted to 12 per cent of the total value of bulk drug requirements. It also pegs growth rate for the total bulk drug requirement for exports and for formulation activity (for both domestic consumption and exports) at 16 per cent while the ratio of value of consumption of bulk drugs for production of formulations to the value of formulations produced as 1:4.

As per the working group, imports are expected to continue even with the advanced level of technological inputs as no country will be in a position to become fully self-sufficient in case of pharmaceuticals.

Imports of drugs candepend on a variety of factors like incidence of a disease for which it is used, feasibility of its production in the country or, if already being produced, status of its indigenous production, availability of alternate/equivalent drugs, international price vis-a-vis price of indigenous produce, tariff rates, import policy, etc. The annual report of department of chemicals and petrochemicals, which contains the details of the requirement of pharmaceuticals during the Ninth Plan, states that during the period ending March 1998, 265 IEMs were filed by pharmaceutical companies for various bulk drugs, formulations and intermediates. These IEMs are likely to generate employment for approximately 19,000 people and there would be an investment of approximately Rs 410 crore on these projects.

During the same period, foreign investment proposals worth approximately Rs 157.86 crore were approved.

The annual reports says that a new programme has been initiated by the Department of Science and Technology (DST) forpromoting R&D in drugs and pharmaceuticals sector. A two tier structure has been set up by DST to manage the programme. Besides initiating new drugs development projects, the programme also proposes to support creation of facilities that were essential for new drugs development. Under the said programme 21 proposals have so far been cleared.

Further to boost pharmaceutical exports, an export promotion cell in the pharmaceutical division has been created in the Department of Chemicals and Fertilisers. The functions of the cell are to act as a nodal centre for all queries/issues regarding pharma exports, undertake promotional activities for acceleration of pharma exports and consider suggestions for modifications in Exim policy from the industry.

As for the much debated Drugs Price Equalisation Accounts (DPEA), the department has referred 71 important assessment cases involving an amount of Rs 220 crore to the three member committee.

The committee has submitted its recommendations in 22 cases involvingliability of Rs 20 crores. Till date, an amount of Rs 22.50 crores has been deposited into the DPEA by the pharmaceutical companies.

Production of bulk drug during 1997-98 increased by 20 per cent from Rs 2,186 crore to Rs 2,623 crore, while that of formulations during the same