Pharma hub has shifted towards Goa

With almost all major pharmaceutical companies operational in Goa, would you claim that the pharma hub is now shifting from Maharashtra to Goa?

Salim Veljee

Looking at the number of pharma companies in Goa, I would definitely say that the pharma industry hub has already shifted to Goa from Maharashtra. Maharashtra has many labour related issues. In 1996, the Central Government provided Goa with special tax incentives, which prompted many pharma companies to move to Goa. We have a good environment and we do not permit any bulk drug or API units. Goa is exclusively known for its formulation units, which allowed pharma companies to set up facilities. Moreover, not only tax incentives, but as I have mentioned, environmental benefits and friendliness of people over here have also attracted many pharma companies to the state. Today, we have around 80 pharma units in Goa, out of which 90 per cent are involved in exports. Goa’s pharma sector has a turnover of around Rs 10,000 crores, which includes both domestic as well as exports.

Describe the efforts of Goa FDA to increase pharma exports from the state?

All these years, drug manufacturers used to head to Nhava Sheva port in Maharashtra for export business. Under the Drugs and Cosmetics Act, designated ports are notified and only from these ports import and export activities can be carried out. It was a long standing demand of the industry to declare Goa’s Mormugao Port Trust (MPT) as the designated port under the Drugs and Cosmetics Act. But, somehow the feasibility reports were not favourable. But in 2012, Surendra Singh, the then DCGI, along with P Mara Pandiyan, Chairman, MPT, facilitated the process and in 2013, Mormugao was declared as a designated port under the Drugs and Cosmetics Act. Now, exports can be done from here. However, export business has not fully shifted to MPT and Nhava Sheva port is still being used to a greater extent. Moving the containers to Nhava Sheva port entails a lot of money and time. Moreover, there are risks involved during the transport of consignments.

So, Goa has become the ideal place to manufacture and export drugs. Goa Pharmaceutical Manufacturers’ Association (GPMA) has also played a greater role in making MPT a designated port. However, this provision is not completely utilised. Once bigger companies start importing from this port, vessels can dock here and the same vessels will go back with the export material. Now, we are convincing manufacturers that export facility has come at your door step and they should utilise this opportunity. Out of the Rs 10000-crore pharma business, Rs 6500 crore to Rs 7000 crore comes from exports.

What are the major achievements under your leadership?

Commissioning an independent FDA building is a major achievement. Through my department, the Goa Government represents pharma, as well as the food industry to the tune of Rs 15000 to Rs 18000 crores. This building will help facilitate pharma and the food industry related work to a greater extent. Despite the pharma and food sector being such large industries in Goa, the infrastructure to look after their functioning was not up to the mark. Now, with the new building, the image of Goa’s FDA will get a boost, not just in India but outside the country as well.

As far as the quality is concerned, you will not find serious complaints about our companies, which indicates that they are quality-oriented and are sensitive to the changing times.

The US FDA have send warning letters to big Indian pharma companies for not complying with the GMP norms. Which efforts have you taken to make pharma companies in Goa GMP compliant?

Around 80-90 per cent of our companies are engaged in exports. They are subjected to audits by overseas auditors and regulators during the process of granting permissions for exports. Round the year they are subjected to various audits. Local FDA also conducts their own audits. So industry and facilities are kept under a lot of surveillance, which allows them to upgrade and update themselves.

Tell us about the benefits offered by Goa FDA to pharma companies that other FDAs in India may not be offering.

We have a single office for the entire state. It brings all the services under one roof. Without compromising on requirements of law these services are disposed off on fast track basis. If we come across any bottlenecks at the zonal level then we are ready to address them through dialogues as well. We are very flexible with the industry and within the parameters of the law.

Is Goa Government offering any special schemes for the pharma industry?

As of today, there are no special schemes and tax incentives. However, we hope that within the next two to three months, a new industry policy may be announced by the State Government. The pharma industry needs three critical things, land, water and power. The Government is seriously looking at addressing these issues. This will motivate new pharma units to set up their plants in Goa. Even FDA is following up with the State Government for the same issue. Manohar Parrikar, Chief Minister, Goa is looking at the possibility of identifying new industrial places where the pharma industry would also get a chance to set up the units.

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