Parliamentary Panel Flags Underutilization of Funds in Pharma Department Schemes
UPSC / SSC current affairs note · Polity
Why in news
The Parliamentary Standing Committee on Chemicals and Fertilizers has objected to the underutilization of allocated funds in certain schemes of the Department of Pharmaceuticals. The department has since taken corrective measures including strengthened monitoring, milestone-based releases, and awareness workshops to improve fund utilization.
Background
The Department of Pharmaceuticals operates three PLI schemes with a total budget outlay of ₹25,360 crore. The Parliamentary Standing Committee reviews the performance of these schemes and flags issues like fund underutilization to ensure effective implementation.
Key facts
Parliamentary Standing Committee on Chemicals and Fertilizers objected to underutilization of funds in some schemes of the Department of Pharmaceuticals.
No such objection was raised for schemes under the Department of Fertilizers and Department of Chemicals & Petrochemicals.
Corrective measures by the Department of Pharmaceuticals include: strengthening periodic monitoring through Project Management Agencies (PMAs), introducing claim forecasting and milestone-based releases, improving Treasury Single Account/Public Financial Management System readiness, and aligning budget estimates with actual implementation sequencing.
Awareness workshops, outreach programs, and stakeholder consultations are conducted to enhance awareness of scheme guidelines, eligibility, documentation, claim procedures, and timelines.
For Bulk Drugs and Medical Devices Parks schemes, assistance is provided to expedite key regulatory approvals.
Regular review meetings, monthly reports, project implementation tracking, expenditure forecasting, fund management, and site visits are conducted.
The three PLI schemes under the Department of Pharmaceuticals have attracted over ₹51,997 crore investment and achieved cumulative sales of ₹3.88 lakh crore, including exports of over ₹2.43 lakh crore.
Production capacity has been created for 218 active pharmaceutical ingredients/key starting materials/drug intermediates and 57 medical devices including CT, MRI, ultrasound, linac, and critical implants.
Medical device exports increased from ₹26,915 crore in 2019-20 to ₹42,360 crore in 2024-25; domestic manufacturing rose from about ₹28,000 crore to about ₹41,500 crore in the same period.
Indigenous urea production increased from 225 LMT in 2014-15 to 293.30 LMT in 2025-26, with a record 314.07 LMT in 2023-24.
Prelims pointers
- Parliamentary Standing Committee on Chemicals and Fertilizers
- Department of Pharmaceuticals
- Production Linked Incentive (PLI) schemes
- Bulk Drugs and Medical Devices Parks schemes
- New Investment Policy (NIP)-2012 for urea
- New Urea Policy (NUP)-2015
- Nutrient Based Subsidy (NBS) scheme for phosphatic and potassic fertilizers
- Open General License (OGL) for P&K fertilizers
- Maximum Retail Price (MRP) guidelines dated 18 January 2024
- National Fertilizers Policy
Mains angles
- GS2: Role of Parliamentary Committees in ensuring accountability and effective utilization of public funds.
- GS3: Government schemes for pharmaceutical sector – PLI, Bulk Drugs Parks – and their impact on reducing import dependence and boosting exports.
- GS3: Fertilizer sector reforms – NIP-2012, NUP-2015, NBS scheme – and their role in achieving self-sufficiency in urea and reducing import dependence.
- GS3: Issues of fund underutilization in central schemes – causes, consequences, and corrective measures.