A Parliamentary panel has expressed strong dismay at the sluggish progress of the centrally-sponsored Medical Devices Parks scheme, highlighting the substantial underutilization of allocated funds despite continuous reviews by the Department of Pharmaceuticals (DoP).
The first installment of Rs 30 crore, designated for four states—Himachal Pradesh, Tamil Nadu, Madhya Pradesh, and Uttar Pradesh—was allocated in 2021-22, but has remained completely unused even into the following financial year, 2022-23. Under the scheme, each state is to receive Rs 100 crore, yet the funds have not been effectively deployed. The objective of the scheme is to reduce India’s dependence on the import of medical devices, a crucial sector for national healthcare.
The Committee voiced serious concern over Himachal Pradesh’s withdrawal from the scheme, warning that this could lead to further delays in the implementation of the Medical Devices Parks.
In its second report to the 18th Lok Sabha, the Parliamentary Standing Committee on Chemicals and Fertilisers condemned the lack of progress in utilizing these funds. The Committee demanded a comprehensive report detailing subsequent fund releases and specific reasons behind the delays. The DoP had engaged IFCI as a Project Management Agency to oversee the project’s execution, but the states have failed to demonstrate effective utilization of the funds.
“The Committee is dismayed to note that, despite regular progress reviews and engagement of IFCI, the four states have failed to utilize the first installment released in 2021-22,” the panel emphasized in its report.
The Committee also reiterated its previous criticism regarding the overall non-utilization of Rs 120 crore, with only a meager Rs 89 lakh being utilized, and stressed the importance of stringent monitoring and closer collaboration with state agencies for the scheme’s success.
The panel has now urged the DoP to take immediate and decisive action to expedite the establishment of the Medical Devices Parks in the remaining states. Furthermore, it has called for the DoP to provide a clear explanation for the delay in fund utilization. The Committee has also demanded a firmer commitment from the Department to ensure the scheme’s swift and efficient implementation and suggested considering the expansion of the initiative to other states with a more robust medical device industry.
