Thursday, October 26, 2017

Budget crunch prevents NDC from expanding productions



Kathmandu, Oct. 25: Frequent change in the leadership at the ministry, lack of budget disbursement and confusion created by the Goods and Services Tax (GST) implementation in India have hampered the production of medicines at the Nepal Drug Company (NDC).
It has failed to produce about 15 types of medicines within five months following its reoperation.
The state-owned pharmaceuticals company had resumed its production in May this year after shutting down for about eight years.
The company had restarted with the production of 'Jeevan Jal' – an oral rehydration solution (ORS), and the then Minister for Industry Nabindra Raj Joshi had announced that the NDC would produce about 40 types of medicines, including anti-venom and anti-rabies drugs, of which 15 types of medicines would be produced by this October.
A source at the company said that the Ministry of Finance (MoF) was reluctant to disburse the budget which barred the NDC from expanding the production of medicine.
The company was able to re-operate its plants with a loan support of Rs. 64.8 million from the government.
Although the MoF had pledged a total loan of Rs. 146.5 million to the company, the latter is yet to receive the additional budget.
The source claimed that the industry ministers appointed after Joshi were less enthusiastic to support the NDC. Minister for Industry Sunil Bahadur Thapa even said that the government should not run any industry or businesses rather invite the private sector to operate them.
According to Director General of the company Dr. Robhash Kusum Subedi, the delayed in the budget disbursement was one of the reasons behind the company's failure to meet the deadlines.  
"Furthermore, the GST implementation in India caused disturbances while importing the machineries needed for the production plant. But all the necessary equipment have been arrived and the plant construction is moving ahead in full swing," he said.
Dr. Subedi said that the company needed about Rs. 80 million for the renovation of the plant.
"The company couldn't produce the medicines as per the plan proposed six months ago. As per the revised plan, Cetamol will be produced within a month and about nine different types of medicines, such as Iron Pills, Albendazole and other tablets will be produced within this fiscal year 2017/18," he said.
The company plans to produce medicines of international standard as per the World Health Organisation (WHO) Good Manufacturing Practice (GMP) guidelines.
The NDC was forced to halt its operation about more than eight years ago as it couldn't follow the WHO-GMP guidelines and Codes on Drug Manufacturing, 1984.
The government in 2009 had made it mandatory for the pharmaceuticals companies to follow both the guidelines and codes.  

(Published in The Rising Nepal, 26 October 2017)

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