Ministry of Chemicals and Fertilizers

Year End Review- 2019:  Ministry of Chemicals & Fertilizers

Launch of Phase-II of DBT in Fertilizer Subsidy; Fertilizer Subsidy hiked around Rs. 10,000 crores in Budget 2019-20

7th March celebrated as ‘Janaushadhi Diwas’ across India; “Jan Aushadhi Suvidha Oxo Biodegradable Sanitary Napkin” now available at only One Rupee per pad

NPPA caps Cancer Drug Prices

4 Plastic Parks approved for implementation in Phase-I by next year

Posted On: 31 DEC 2019 5:30PM by PIB Delhi

Launch of Phase-II of DBT in Fertilizer Subsidy:

Union Minister for Chemicals and Fertilizers, Shri D.V. Sadananda Gowda launched the Phase-II of the Direct Benefit Transfer of Fertilizer Subsidy (DBT 2.0) in July, 2019. The  new initiatives of DBT 2.0 are DBT Dashboards, PoS 3.0 Software and Desktop PoS Version. The Department of Fertilizers (DoF) has implemented the Phase-I of DBT system in fertilizer subsidy pan-India in Fertilizers w.e.f. March 2018.

Phase-I DBT system in Fertilizers (DBT 1.0) envisaged the release of 100% subsidy on various fertilizer grades to the fertilizer companies on the basis of actual sales made by the retailer to the beneficiaries.  The Phase-II of DBT will explore the feasibility of Direct Cash Transfer to farmer’s accounts. An expert committee under NITI Aayog has been constituted on 28.09.2017 as per the request of the DoF, to suggest a model for the implementation of phase-2.

A Project Monitoring Cell was set up at DoF to oversee implementation of DBT exclusively.  24 State Coordinators have been appointed across all States to monitor the on-going DBT activities.

Implementation of the DBT Scheme requires deployment of PoS devices at every retailer shop, training of retailers for operating PoS device. Across the country, Lead Fertilizer Supplier (LFS) have conducted 10807 training sessions till November 2019. 2.26 Lakh PoS devices have been deployed across all States. 1176.299 Lakh Metric tonnes Fertilizers have been sold through PoS devices till December 2019.

Fertilizer Subsidy sees a hike of around Rs. 10,000 crores in Budget 2019-20:

In the Union Budget 2019-20, The Fertilizer Subsidy allocations have seen a hike of around Rs. 10,000 crores from Rs. 70,090.35 crores (Budget Estimates 2018-19) to Rs. 79,996 crores (Budget Estimates 2019-20). Out of this allocation, Urea subsidy comprises of Rs. 53,629 crores and Nutrient based subsidies of Rs. 26,367 crores, as per the Expenditure Profile 2019-20 document in the Budget.

The Fiscal Policy statement of the Budget mentioned that a total of 610.08 lakh metric tonnes (LMT) of fertilizers have been sold under DBT scheme from April 2018 to May 2019.

Further, the National Institutes of Pharmaceutical Education and Research (NIPER) have also seen a hike in allocations from Rs. 135 crores (Budget Estimates 2018-19) to Rs. Rs. 150 crores (Budget Estimates 2019-20). Board of Governors (BoGs) of six NIPERs set up.  Further, 156 faculty and 150 administrative posts created in these institutes.  Recruitment Rules of these posts framed and the same are likely to be filled by year end.

Significant Reduction in Cancer Drug Prices due to Trade Margin Capping:

The National Pharmaceutical Pricing Authority (NPPA), in a meeting on 26th February, 2019, invoked extraordinary powers in public interest, under Para 19 of the Drugs (Prices Control) Order, 2013 to bring 42 non-scheduled anti-cancer drugs under price control, through Trade Margin Rationalisation. As per data available with NPPA, the MRP for 105 brands would be reduced up to 85%.

Later on 8th March, the NPPA, under Ministry of Chemicals & Fertilizers, put out list of 390 anti-cancer non-scheduled medicines with MRP reduction up to 87%.  The revised prices came into effect from 8th March, 2019.

This move is expected to benefit 22 lakh cancer patients in the country and would result in annual savings of approx. Rs. 800 crores to the consumers.

India is witnessing a steady rise in cancer incidence.  The number of incident-cases has risen from 8 lakh in 2004 to an estimated 15 lakh (annually) by 2018.  Even with nearly two third of patients eventually dying of this disease, an estimated 22.5 lakh patients are currently living with cancer in India.

7th March celebrated as ‘Janaushadhi Diwas’ across India:

Nearly 5,880 Janaushadhi stores are functional in 692 districts across the country. About 10-15 lakh people benefit from Janaushadhi medicines per day.

The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) scheme has led to total savings of approximately Rs.1,000 crores for common citizens, as these medicines are cheaper by 50% to 90% of average market price.

The Union Minister of Chemicals and Fertilizers, Statistics and Programme Implementation, Shri D.V. Sadananda Gowda, told the Rajya Sabha on 28th June that NPPA has so far fixed the ceiling prices of the 857 formulations included in Revised Schedule-I of the Drugs (Prices Control) Order, 2013 (DPCO) up to 31st May, 2019.

Shri D.V. Sadananda Gowda launched a mobile application “Janaushadhi Sugam” in August, 2019 Which will enable people to search Janaushadhi generic medicines and the stores very conveniently through their smartphones.

“Jan Aushadhi Suvidha Oxo-Biodegradable Sanitary Napkin” now available at only One Rupee per pad:

 The sale of ‘Janaushadhi Suvidha’ sanitary napkins through Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs) started in the year 2018-2019. Over  2 crore  pads have been sold at PMBJK this years.

 

In order to make these sanitary pads more affordable and accessible to the women of India, Government of India has now decided to make these pads available at rate of only Rs 1.00/- per pad as promised by the Prime Minister. This is an important step in ensuring the health security for the section of Indian women who still use unhygienic aids during menstrual period due to non-affordability of sanitary pads available in the market. This will ensure ‘Swachhta, Swasthya and Suvidha’ for the underprivileged women of the country. This step taken by the Department of Pharmaceuticals will ensure the achievement of Prime Minister Shri Narendra Modi’s vision of “Affordable and Quality Healthcare” for all. It will also help in fulfilling the Prime Minister’s dream of “Clean India & Green India” as these pads are oxo-biodegradable and environment friendly. Jan Aushadhi Suvidha is being made available for sale in more than 5,500 PMBJP Kendras across the country.

Shri D.V. Sadananda Gowda inaugurated the India Pharma  & India Medical Device 2019 in Bengaluru:

The Union Minister of Chemicals and Fertilizers, Statistics and Programme Implementation, Shri D.V. Sadananda Gowda, inaugurated the 4th edition of India’s biggest Global Conference on Pharmaceuticals and Medical Devices, - “India Pharma 2019 & India Medical Device 2019” in Bengaluru on 18th February.

With several proactive measures by the Government, exports have improved and the growth in Pharma sector is back on track. The Pharma industry is expected to grow at a CAGR of 15% in the near future. On the other hand, as per industry estimates, the medical devices market is expected to grow to $50 billion by 2025.

Shri Sadananda Gowda inaugurated the Annual Health Conference "Pharma Med HD 2019 Transforming the perception of Indian Health Care Industry":

The Minister of Chemicals & Fertilizers Shri Sadananda Gowda inaugurated the Annual Health Conference "Pharma Med HD 2019 Transforming the perception of Indian Health Care Industry" in New Delhi on September 17, 2019. The health care industry in India has been one of the country’s largest economic sectors, with regard to both employment and revenue. and it is expected to generate 40 million jobs by 2022.

Indian healthcare sector, is expected to record a threefold rise, at a CAGR of 22 per cent during 2016-2022 to reach US$ 372 billion in 2022 from US$ 110 billion in 2016. India ranks 145th among 195 countries in terms of quality and accessibility of healthcare. There is immense scope for enhancing healthcare services penetration in India, thus presenting ample opportunity for development of the healthcare industry.

Contract for coal gasification plant for urea project at the erstwhile Talcher unit of FCIL in Angul in the State of Odisha:

Contract for coal gasification plant for urea project at the erstwhile Talcher unit of FCIL was awarded on 17th September, 2019. Talcher Fertilizers Limited (TFL) is implementing this Coal Gasification based Ammonia/Urea Project under Government's flagship program of revival of closed fertilizer units of Fertilizer Corporation of India Limited (FCIL). The project shall be the first operational Urea plant in Odisha and shall produce 1.27 MMTPA of Urea at an estimated investment of about Rs. 13277 Crore. The project is expected for completion in 2023 and would generate direct and indirect employment of about 4,500.

FAGMIL signs MoU with Himachal Pradesh Government to establish Rs. 605 crores White cement Plant Project:

Under its diversification programme, FCI Aravali Gypsum and Minerals India Limited (FAGMIL) has taken up a project to establish a white cement plant near village Nohra Dhar in Sirmour district of Himachal Pradesh, at a project cost of approximately Rs. 605 crores. It will be the 4th White Cement plant in the country. The installed capacity of the plant would be 0.3 million tonnes per annum and it will generate the direct employment of approximately150 persons. The plant is expected to be commenced by the year 2022. It will prove to be a milestone for the development of the Sirmour District.

For ensuring completion of the project in a time bound manner an MoU was signed on 25th February in Shimla by Smt. Alka Tiwari, Chairperson & Managing Director, FAGMIL and Shri Manoj Kumar, Additional Chief Secretary, Government of Himachal Pradesh, in the presence of Chief Minister, Himachal Pradesh, Shri Jai Ram Thakur.

4 Plastic Parks approved for implementation in Phase-I and 2 Plastic Parks in Phase-II:

In phase-I of the scheme, four Plastic parks in the States of Assam (Tinsukia), Madhya Pradesh (Raisen), Odisha (Jagatsinghpur) & Tamil Nadu (Thiruvallur) are approved for implementation till 2019-20.

In Phase-II of the scheme, preliminary  proposals were received from the States of Jharkhand, Madhya Pradesh, Uttar Pradesh, Haryana, Gujarat, Chhattisgarh, Punjab, West Bengal, Uttarakhand, Manipur, Jammu & Kashmir and Rajasthan, and based on merits and examination of completed DPRs, two plastic parks in the States of Jharkhand (Deogarh) and Madhya Pradesh (Bilaua) have been given ‘final approval’ in 2018-19.

Achievements of CIPET during the last six months:

Central Institute of Plastics Engineering & Technology (CIPET), an autonomous institute under the Department of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, Government of India; is devoted to Skill development, Technology Support, Academics and Research & Development (STAR) activities for the growth of polymer & allied industries in the country. CIPET has, at present, 37 functional centres spread across the country, with headquarters at Chennai.

2.CIPET, through its 37 functional centres, has extended a strong helping hand to industry by providing 56,968 technology support services (upto Nov., 2019). CIPET has also provided skill training to 29,570 persons (upto Nov., 2019) through its long-term training and various skill development programmes.

3.The Department of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, Govt. of India has constituted an Expert Committee to define ‘Single Use of Plastic’ in the Country with well-defined Terms of Reference (ToR). The Expert Committee submitted its report to the Department and with the approval of Hon’ble Minister (Chemicals & Fertilizers), the report has been sent to Ministry of Environment, Forest & Climate Change, Government of India for necessary action.

4.A delegation led by Union Minister (Chemicals & Fertilizers) visited Belgium and Germany for inauguration of Indian Pavilion in respect of K-Fair 2019 and for overseas promotion of Indian Chemicals and Petrochemicals Industry, PCPIRs & India Chem 2020 from 14-17 October, 2019. About 2 billion USD additional investment in India was announced by the BASF, Germany during the visit of Hon’ble Minister.

5.Following CIPET Centres/Hostels inaugurated during the last six month of the new government:

(i)Boys & Girls Hostel at CIPET : Institute of Plastics Technology (IPT), Ahmedabad on 18th August, 2019 by Hon’ble Minister of State (C&F).

(ii)Boys Hostel at CIPET : Institute of Plastics Technology (IPT), Chennai on 29th August, 2019 by Hon’ble Minister (Chemicals & Fertilizers).

(iii)Boys Hostel at CIPET : Centre for Skilling and Technical Support (CSTS), Hyderabad on 26th September, 2019 by Hon’ble Minister (Chemicals & Fertilizers).

(iv)CIPET : Centre for Skilling and Technical Support (CSTS), Vijayawada on 24th October, 2019 by Hon’ble Minister (Chemicals & Fertilizers) jointly with Hon’ble Chief Minister, Govt. of Andhra Pradesh.

(v)CIPET : Institute of Plastics Technology (IPT), Kochi on 31st October, 2019 by Hon’ble Minister (Chemicals & Fertilizers).

6.Inauguration of CIPET: SARP - APDDRL Bengaluru has been proposed to be held by end of December, 2019.

Cabinet approved sale of 481.79 acres of land held by FACT to the Government of Kerala and utilization of the sale proceeds by FACT:

Approved on 24th July, this step will help FACT to reduce the bank borrowings and to implement projects for enhancing fertilizer production capacity and upgrading logistics / raw material handling facilities. The revival of FACT will create opportunities for expansion and diversification of the company and this in turn, will help to generate more jobs, both directly and indirectly. The net effect of this will be a boost to the economy of the State of Kerala and improving fertilizer availability to South India.

Cabinet approved Implementation of Budgetary support to pharmaceutical companies in the public sector – seeking modification therein:

The Union Cabinet chaired by Prime Minister Narendra Modi on 17th July approved budgetary support as loan to the tune of Rs 330.35 cr. for meeting the employees’ liabilities (Unpaid salary - Rs. 158.35 cr. + VRS Rs.172.00 cr.) as per following break-up: IDPL - Rs.     6.50 crores;  RDPL- Rs.  43.70cr.; & HAL   - Rs. 280.15 cr. To expedite closure of IDPL & RDPL and strategic sale of HAL and BCPL, the Union Cabinet on 20.11.2019 approved extension /renewal of Pharmaceuticals Purchase Policy (PPP) with existing terms and conditions till closure/strategic sale of pharma PSUs.

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