BRING POLICY TO LURE PHARMA, KTR TELLS CENTRE

● HIGHLIGHTING THE issues being faced by the pharma companies, the state minister told Mr Gowda that the pharma industry is experiencing financial burden due to reduced production capacity.

IT and industries minister K.T. Rama Rao on Wednesday requested Union chemicals and fertilisers minister D.V. Sadananda Gowda to bring out a new pharmaceutical policy to attract companies that are looking for an alternative location to China, to India.

Mr Rama Rao suggested that the Centre should set up a task force in association with departments of pharmaceutical, promotion of investment and internal trade, external affairs ministry and state governments to formulate a strategy to promote investments in India. The minister sought to highlight the fact that Telangana is the largest pharmaceutical hub in the country, contributing more than 35 per cent of the national drug production.

Pitching Hyderabad as the future investment destination for global drug makers, he told the Union minister that Telangana is developing the world’s largest integrated pharma cluster — Hyderabad Pharma City — spread over 19,333 acres.

IT and industries minister K.T. Rama Rao on Wednesday sought the Central government support and cooperation to the mega pharma project in Telangana by promoting it as the de-facto location for pharmaceutical manufacturing and R&D in India.

“The government of India can forge multilateral ties with EU countries and the US to emerge as an alternative to China.”

Highlighting the issues being faced by the pharma companies, the state minister told Mr Gowda that the pharma industry is experiencing financial burden due to reduced production capacity, shortage of labour, price pressure caused by supply chain issues as a result of Covid-19.

Stating that the cost of operations of the industry has increased tremendously owing to the increased cost of raw materials, logistics, reduced capacities, interim measures to comply with the lockdown guidelines, the minister suggested the Centre to expedite income tax and GST refunds to ease the financial burden, consider extending a moratorium on tax payments for the next six months and ensure that commercial banks pass on the benefits of lower interest rates to companies.