New Delhi : Government is looking at the financial viability for providing Rs 200 crore each to three new bulk drug manufacturing parks in order to create common minimum facilities, Parliament was informed.

In 2013, government had constituted a high level committee headed by V M Katoch to study the whole issue of active pharmaceutical ingredients (APIs) of critical importance.

"The committee has since submitted its recommendations. After examining the recommendations, government is now looking into the financial viability of supporting the proposal for providing assistance for common minimum facilities for three greenfield bulk drugs/API parks to the extent of Rs 200 crore each," Minister of State for Chemicals and Fertilisers Hansraj Gangaram Ahir said in a written reply to the Rajya Sabha.

However, the minister did not mention which three new bulk drug manufacturing parks would be receiving the assistance.

The panel was also given the mandate to work out a package of interventions/concessions required to build domestic production capabilities and examine the cost implications.

It has suggested setting up of mega parks to manufacture APIs with common facilities like testing, power and effluent treatment plants. It has also suggested establishing common utilities and services such as storage, testing laboratories, IPR management, designing and guest house/accommodation maintained by a separate special purpose vehicle (SPV).

The committee has also recommended fiscal and financial benefits to promote the sector.

The government is also working in association with Ministry of Environment, Forests and Climate Change and Ministry of Commerce & Industry to sort out issues relating to the difficulties being faced by the bulk drug manufacturers relating to environmental issues, Ahir said.

Bulk drugs are used as raw materials by the pharma industry. India meets about 80 per cent of its demand of bulk drugs through import from China.