To ensure uniformly high standards in the domestic pharmaceutical industry, the 
Centre plans to take over from the states the authority to clear manufacturing 
units. This means the power of state drug controllers to license companies 
wanting to set up manufacturing units would be transferred to the office of a 
centralised drug controller general. The far-reaching measure would transform 
the pharmaceutical industry, which logs a turnover of Rs 60,000 crore annually, 
growing at a CAGR of 16%. 

At present, if the drug controller in one state denies a pharma company 
permission to set up a facility on procedural grounds, the firm can simply 
apply to another state. After setting up a manufacturing facility in that other 
state, the company's drugs can then be shipped to the state that had earlier 
denied it permission. 

Currently, companies can play off states against each other to obtain 
favourable interpretation of procedural regulations resulting in sub-standard 
drugs surfacing in the market. Drug controller general of India Surinder Singh 
said by changing the law and empowering the central drug authority to grant 
manufacturing licences, such anomalies would be rectified. 

The proposed new law would also bring about standardisation in drug 
manufacturing processes and complement the Central Drug Authority Bill that 
seeks to enhance the punishment for spurious drug manufacturers. Currently, the 
Central Drug Standard Control Organisation has powers to approve new drugs, 
clinical trials, import registration, licensing of blood banks, vaccines, 
medical devices as well as ban drugs and cosmetics. 

State-level licensing authorities approve manufacturing sites for drug 
manufacture, license establishments for sale and distribution of drugs, grant 
approval for drug testing labs, monitor the quality of drugs marketed in the 
country and recall substandard drugs. 

However, since the change in norms would need shifting the subject from the 
Concurrent List of the Constitution to the Central List, it requires 
constitutional amendment. Though the government plans to introduce the 
necessary legislation in Parliament, immediate passage would be difficult as 
constitutional amendments require not only approval by both Houses of 
Parliament, but also ratification by two-thirds of each state assembly. Sources 
said most states are likely to resist a dilution of their powers. 

The government's move forms part of the Central Drug Authority Bill, providing 
for a national health regulator, which conceives of a centralised licensing 
authority to regulate the healthcare sector, including pharmaceuticals. The 
Bill, which is being considered by a parliamentary standing committee on health 
& family welfare headed by Amar Singh is learnt to have submitted its report 
and the Bill might be taken up some time next year, according to a health 
ministry official

http://www.financialexpress.com/news/centre-seeks-to-take-over-licensing-of-drug-plants/381624/
"All you need is ignorance and confidence; then success is sure."








 
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