Hyderabad: At a time, when Telangana was promoting growth of life sciences sector and manufacturing medical devices, Central Government has not considered the State Government’s proposal for a medical device park. The “Promotion of Medical Devices Parks” scheme is implemented with a total financial outlay of Rs. 400 crore and the maximum assistance under the […]
Hyderabad: At a time, when Telangana was promoting growth of life sciences sector and manufacturing medical devices, Central Government has not considered the State Government’s proposal for a medical device park. The “Promotion of Medical Devices Parks” scheme is implemented with a total financial outlay of Rs. 400 crore and the maximum assistance under the scheme for one Medical Device Park would be limited to Rs. 100 crore.
The tenure of the scheme is from financial year 2020-2021 to FY 2024-2025 and the selected Medical Device Park project will be implemented by a State Implementing Agency (SIA). Under the scheme, the Department of Pharmaceuticals had received proposals from 16 States and union Territories, including Uttar Pradesh, Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, Madhya Pradesh, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttarakhand, Chhattisgarh, Kerala, Goa and Jammu & Kashmir.
However, union Minister of State for Chemicals and Fertilisers Bhagwanth Khuba in Lok Sabha on Friday, said the proposals were evaluated as per the criteria given in the scheme guidelines. The final approval for financial assistance of Rs. 100 crore each has been given to Uttar Pradesh, Tamil Nadu, Madhya Pradesh and Himachal Pradesh. There was no proposal to establish more medical device parks in the country under the scheme, he said in reply to a question by Andhra Pradesh MP M Sreenivasulu Reddy.
The Scheme for Promotion of Bulk Drug Parks, with a financial outlay of Rs. 3,000 crores and the tenure from FY 2020-2021 to FY 2024-25, provides for financial assistance to three States for establishing Bulk Drug Parks. The proposals received were under evaluation. Under the non-schematic interventions, the Central Government has allowed 100 per cent Foreign Direct Investments (FDI) in medical devices sector.
Similarly, the Government has permitted 100 percent FDI in pharma sector for Greenfield projects under automatic route. For brownfield projects, up to 74 percent FDI investments are allowed under automatic route and beyond 74 percent to 100 percent, FDI investments are permitted under government approval route.
Further, to redress specific challenges of the MedTech Industry, in view of the diversity and multi-disciplinary nature of the sector, the institutional mechanism of Standing Forum of Medical Devices Associations, has been set up to deliberate on various issues with all the stakeholders, including regulators.