Jharkhand govt reserves 30% of total drug purchase for local companies to attract investors
Chennai, July 29, 2022 :
On the lines of the central government’s flagship Make in India programme, the Government of Jharkhand has designed a State Drug Procurement Policy (SDPP) that reserves 30% of the total drug purchase by the government for local manufacturers.
This initiative of the government is to encourage pharmaceutical manufacture by local companies and promote the pharma sector in the state. The policy in consideration includes 30 per cent of the total Rs. 600 crore worth medicinal and medical related products required annually for the Jharkhand health sector.
“This policy is already in force now. It was proposed by the state drugs control administration. The suggestions made by the DCA were accepted by the state medical services corporation (JMSC),” said Suman Kumar Tiwari, deputy drugs controller who is close to the policy making body of the health department.
He said this decision will benefit nearly 250 manufacturers of drugs, medical devices, surgical instruments, diagnostic materials, gloves, sanitizers, face masks etc. Although Jharkhand has only 10 formulation units, all other healthcare products and equipment manufacturers come around 250 who will get the 30 per cent preference. In addition to this, usual price preference will be given to the companies as incentives.
It is learnt that the government has taken this ambitious initiative to invite more investors on the pharma park project to be set up near Ranchi. The government is going ahead with a plan to make the state as the ‘pharmacy hub’ of the eastern India, for the purpose, companies from various states are being invited to the state by offering incentives and other benefits. The local manufacturers need not worry about their products as the government itself will purchase 30 per cent of the products. The proposed pharma park will have 55 dedicated plots for MSME and non-MSME units, both for formulations and APIs.
Tiwari said, the medical services corporation is procuring medicines and other products from Sikkim and West Bengal for the current use. Very shortly, there will be a change to this system as only 70% of the total requirement will be procured from outside of the state. Domestic players are provided with a 30% quota of the total purchase. He said, “Until now, we were looking towards the east (Sikkim and WB) for medicinal needs, but, very shortly we will have suppliers in our own state. Big players from Ahmedabad, Hyderabad and Mumbai are showing interest to invest in the Jharkhand pharma park project”.
Meanwhile, manufacturers from West Bengal and Sikkim, who are suppliers to the Jharkhand medical sector, are now dismayed by the new procurement policy of the Jharkhand government. Manufacturers and marketers from the east and north eastern states have called an urgent meeting to discuss the new decision of the government and to adopt a new strategy to sustain their business. Companies who are supplying Jharkhand from south India will also attend the meeting which will be held either in Kolkata or in Bengaluru, said a dealer from West Bengal. Financial Express