The Department of Pharmaceuticals (DoP) has reportedly proposed the creation of Rs 3,000 crore corpus for companies to set up fermentation or active pharmaceutical ingredients (APIs) units.
According to an ET report, a decision in this regard has been taken to boost domestic manufacturing in India to counter dwindling Chinese supply because of the coronavirus outbreak.
Quoting people in the know, the report said the proposal was set to be put before the union cabinet on Friday.
As per the proposal, the government will provide financial incentive to those pharma companies ready to invest Rs 500 crore in an existing or new plant.
Some days ago, the DoP had given a presentation on the scheme to the Prime Minister Office (PMO) detailing the outlines of the scheme. The department has also got an approval from the Expenditure Finance Committee for the proposed scheme, according to the report.
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