Financial Daily from THE HINDU group of publications
Saturday, Mar 01, 2003

Port Info

Group Sites

Industry & Economy - Pharmaceuticals
Corporate - Reactions

Pharma sector hails sops

Our Bureau

MUMBAI, Feb. 28

FOR pharmaceutical and biotechnology companies driven by research and development, the Union Budget 2003-04 seems to be a good one especially as India will now be promoted as the global health destination.

The sops include, drugs and materials imported or produced domestically for clinical trials being exempt from customs and excise duties and the tax holiday for R&D extended up to March, 2004. Mr Kewal Handa, Finance Director, Pfizer Ltd, said that "it is overall a positive budget for the healthcare industry. The real surprise came with the decision to exempt drugs used for clinical trials. Contract Research Organisations (CROs) will greatly benefit from this exemption apart from other research driven companies."

Biotech industry has been given a further lift in the form of export restriction of Rs 20 crore being removed. "The abolition of export obligation of Rs 20 crore for biotech and R&D companies is a step in the right direction," Mr I A Mody, Chairman, Cadila Pharmaceuticals, said.

The concessions that have come in indirectly from other sectors such as insurance and biotechnology have also immensely benefited pharma majors. Mr D B Gupta, Chairman, Lupin Group, said, "For pharma companies the most important positive benefits would be as an indirect result of all the concessions being offered to the healthcare industry as well as the new medical insurance scheme for masses announced by the Finance Minister.''

Diagnostics or medical equipment manufacturing companies got a fillip with a reduction in customs duty on specified life saving equipment from 25 per cent to 5 per cent, and also exemption from CVD (additional duty of customs).

Mr Habil Khorakiwala, Chairman, Wockhardt, is of the view that "enhanced rate of depreciation will not only bring fresh investment but will also benefit modernisation of hospitals.

The benefit under Section 10(23)G will provide access to long-term investment requirement for hospitals and biotechnology.''

The domestic pharma industry is now expected to grow significantly higher with these sops in place.

Mr J.B. Mody, Chairman and Managing Director, J.B. Chemicals and Pharmaceuticals Ltd, said that the pharma industry which is growing at 8 per cent will see much faster growth due to the general health insurance scheme, hospital scheme and certain encouragement given to exports.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Time to invest in equity, debt

Riding the break
Jaswant smiles on the salaried
Impetus and impediments
Dividend, tax gains for MF investors
CST cut to hurt States by Rs 5,000 cr
Style & substance true to form
Will Mauritius lose its sheen?
A curate's egg
That Black Label may cost you less!
Women give the thumbs-up
Prices falling? Just read the fine print
Rly safety gets customs boost
Addl surcharge: No major impact
Health cover for the masses
Hope for disability sector
Jaswant nurtures biotech dreams
An oversight for plastic lens manufacturers?
`A boost for infrastructure'
`Small & simple' Ministry
Cement: An excise load
Many pluses, 1 minus
Good news for cement sector
`Hike in excise duty on cement unnecessary'
Cement industry sore over hike in excise duty
How much do we really owe?
Jaswant packs panch punch to push reforms
Engineering: Increase in service tax
Gold duty cut to beat down smuggling
Fertilisers: Bracing up
Urea price hike not to benefit fertiliser cos
Differing views on risks posed by asbestos use
A five-star plan
Want better roads? Pay 50 paise more for diesel, petrol
45 pc hike in kerosene, LPG subsidy
Big disappointment on oil front
ONGC signs pact with IOC to sell crude
Rs 3,600 cr more from petro sector likely
Budget breathes new life into pharmaceuticals sector
Booster dose for drugs
Pharma sector hails sops
Lower customs duty on equipment hailed — Easing of policy unlikely to lead to new power projects
Steel sector sees silver lining
Signals were clear on Kelkar
`Duty retention on cotton yarn welcome move'
SIMA hails abolition of `deemed' credit
Textile wears a smiling look
SSI list pruned further
Tyre cos hope for more sales mileage
Buoyant coal outlook calls for more pvt hands
Look great and feel good
Price cuts drive auto into top gear
Car makers upbeat about sales volumes
Towards a cycle of development
Toyota to cut price; Volvo may not
Smooth road ahead for car companies
Excise cut to fizzle out on soft drink prices
Gem sector finds hope
Good news for the sick
More benefits for health care
Small paper mills in excise trap
Chennai port has been neglected: SICCI
Keep that shirt on, prices are not going to fall
Knitters decry Cenvat net
Mining units unhappy
Govt hopeful of meeting disinvestment target
Hoping on big-ticket divestments
Disinvestment target fixed at Rs 13,200 cr
Small savings: Remain beneficial for common man
A dividend sop and an unkind cut
Jaswant leaves more money in salaried pocket
Dividend tax, capital gains tax to go — Capital markets get a lift
Dividend tax removal — Promoters, high tax payers to be major beneficiaries
Will purse bear burden or bulge?
Budget vs the professional CA
`A leg-up' for tourism trade

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line