Govt’s APIs Airlifting Conditions – Coronavirus Impact on Pharma Industry
Airlifting essential raw material and components, including active pharmaceutical ingredients (APIs), from China, will be considered by the Centre only if the industry is willing to pay for it, says the Government.
A top government official said, “Indian citizens from Wuhan have been airlifted and even supplies have been sent to China, however, it is different when it comes airlifting components and APIs because it will be seen as a commercial activity with the private sector. So only if the private sector is willing to pay for the cost of such an undertaking, it will be considered.”
After a meeting about the oversupply of goods and components being delayed from China due to the coronavirus outbreak by Finance Minister Nirmala Sitharaman with the representatives of various industries, the government was to actively consider a suggestion of airlifting formulations of essential pharmaceutical products, said the sources.
Now, it is understood that the government has drawn up contingency plans for the same and only if they are paid for, it will be activated.
The government have been informed that the pharmaceutical companies have enough API stock till April, said a second official
. The official added, “We will have to take steps when there is a shortage of APIs for essential medicines and if China still cannot deliver the APIs.”In the Union Budget 2020-21, any rollback to import duty hikes announced, are also being ruled out by the officials. The Central Board of Indirect Taxes and Customs is working on easing clearances of goods which arrive without proper documentation in the immediate term and the banks have been informed to provide bridge loans to companies which are going through a working capital crunch as they have already paid to their suppliers in China but haven’t got the deliveries.
The government is prompted to take a host of measures to protect the economy from the impact of the deepening contagion as there are 43 new cases reported in the country as of Monday.
Govt’s APIs Airlifting Conditions – Coronavirus Impact on Pharma Industry – Source
