The Hindu Editorial Analysis- 22nd August 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Power Play

Why in News?

Wayanad in Kerala limps back to normal life after the devastating land- slide last month, a landslide on Tues- day in Sikkim caused damage to six houses and a building of the National Hydroelectric Power Corporation (NHPC) at its Teesta-5 hydropower station in Gangtok. There is no comparison of the impact of the event in both places, as there was no loss of lives or injuries reverted in Sikkim. However, the cause for concern is that this is the second natural-disaster-led assault on a hydrom».'- er project along the Teesta. 

About NHPC Limited

• NHPC Limited, previously named National Hydroelectric Power Corp., is a significant government organization in India, falling under the Ministry of Power.
• Established in 1975 under the Companies Act, NHPC's primary aim is to advance hydroelectric power within the nation.
• With an authorized capital of Rs.15,000 crore, NHPC stands out as a leading entity dedicated to hydropower development.
• Based in Faridabad, Haryana, NHPC is responsible for the comprehensive planning, promotion, and execution of power projects, both within India and internationally.
• Key functions of NHPC encompass the planning, execution, and maintenance of hydroelectric ventures, along with exploring new project sites and fostering small-scale hydroelectric initiatives.
• The organization is also engaged in extensive Research and Development (R&D) initiatives within the hydroelectric power sector.
• Through long-term agreements, NHPC supplies electricity to state-owned utilities and private distribution companies on a wholesale basis.
• Additionally, NHPC undertakes business activities, including the planning of wind and tidal wave projects, alongside its involvement in various ongoing construction projects.

Imports weaken Indian pharma

Why in News?

Ensuring the affordability of pharmaceuticals is essential for controlling healthcare cuts, eslrcially in India, where out-of-pocket health accounted for nearly 47.1% of the total health expenditure in 2021. While the Drugs Price Control Order, 2013. aims to regulate the prices of existing medicines, a option is to establish a competitive environment for critical medicines by promoting local production. However, the government has taken two initiatives to meet domestic requirements through imports, which could have a chilling effect on the domestic industry.

The pharmaceutical industry in India

Notable achievements

• The Indian pharmaceutical industry, known as 'the pharmacy of the world', plays a huge role in global public health and promoting universal healthcare access.
• India is ranked 3rd globally in terms of production volume and 14th in value.
• India is the largest global provider of generic medicines, holding a 20% share in global supply volume.
• The pharmaceutical industry in India offers 60,000 generic medicine brands across 60 different treatment categories.
• India is the top vaccine producer worldwide, with 62% of the world's vaccines originating from India.
• Approximately 70% of the vaccines recommended by WHO for essential immunization are procured from India.

Industry scenario

• Foreign Direct Investment (FDI)
  • 100% FDI in the Pharmaceutical sector is allowed under the automatic route for greenfield pharmaceuticals.
  • 100% FDI in the pharmaceutical sector is allowed in brownfield pharmaceuticals; wherein 74% is allowed under the automatic route and thereafter through the government approval route.
• Market Size
  • The pharmaceutical industry in India was worth $50 billion in 2022-23, with half of its products being exported.
  • It is projected to grow to $65 billion by 2024 and $130 billion by 2030.
• Export 
  • India plays a crucial role in exporting medicines to more than 200 countries globally.
  • India meets over half of Africa's generic drug needs, about 40% of the US's generic medicine demand, and approximately a quarter of the UK's total medication supply.
  • The export value of pharmaceutical products from India was $24.6 billion in 2021-22, up from $24.44 billion in 2020-21.
  • From 2014 to 2022, the Indian pharmaceutical sector saw a significant growth of 103%, rising from $11.6 billion to $24.6 billion.

Centralization of the licensing authority

• About
  • CDSCO took back the power from state licensing bodies to issue NOCs for exporting certain drugs.
  • In 2018, CDSCO allowed State and UTs' drug licensing bodies to approve exports of specific medicines.
  • The CDSCO zonal office head will now issue NOCs.
  • Manufacturers must now obtain NOCs online via the Sugam Portal before acquiring a production permit from State Licensing Authorities.
• Impact
  • The centralization of the licensing authority is crucial because India needs to prepare for the opportunity presented by drugs worth $251 billion losing their patents in the next ten years.
  • A study by the Department of Pharmaceuticals predicts that many drugs will no longer be under patent protection between 2022 and 2030.
  • The expiration of patents is very promising for the Indian generic drug market, which is expected to expand significantly by incorporating these new medications.
  • Therefore, the decision to centralize NOCs (No Objection Certificates) is a positive one as it will bring formalization to the Indian pharmaceutical industry.
  • This action will enhance the efficiency of the entire process and boost pharmaceutical exports to important global markets.
  • It will promote consistency in procedures and help achieve the goal of reaching $450 billion by 2047.
  • It has been observed that obtaining NOCs from local drug regulators for pharmaceutical products is a cumbersome process that often causes delays.
• Challenges
  • India faces various difficulties such as addressing intellectual property rights and the absence of research and development.
  • It's crucial to comprehend the political, economic, sociocultural, technological, environmental, and legal aspects for evaluating the opportunities and challenges within India's pharmaceutical market.

Steps taken to ensure the quality of manufacturing

• Crack down by Indian Govt
  • Indian government had taken actions against 18 drug companies due to their poor manufacturing quality.
  • The licenses of more than 10 pharmaceutical firms were revoked as part of a crackdown on substandard production.
  • Additionally, the government has issued warnings to 26 companies for not following proper manufacturing procedures.
• Vision Pharma 2047
  • Enhance India's position as a leading global manufacturer of affordable, innovative, and high-quality pharmaceuticals and medical devices with the aim of Vasudhaiva Kutumbakam.
• National Pharmaceutical Policy (2023)
  • The policy is being created to provide a detailed plan to tackle the issues that Indian Pharmaceutical industries are facing.
    • Fostering Global Pharmaceutical Leadership
    • Promoting Self-Reliance
    • Advancing Health Equity and accessibility
    • Enhancing Regulatory Efficiency in the Indian Pharmaceutical Sector
    • Attracting investments