‘Exporters registered with Pharmexcil can avail several benefits’

Pharmexcil, the export promotion council for pharmaceuticals, was set up a year ago. The council was formed by pharma associations like BDMA(I), IDMA, IPA and OPPI to capitalise on various export opportunities in pharmaceuticals. Headquartered at Hyderabad, the regional office of the council will be located in Mumbai. Last month, Pharmexcil was vested with the powers to process and issue Registration-cum-Membership Certificate (RCMC). Dr P V Appaji, executive director, Pharmexcil, in an interview with Satyapal Menon, speaks about the role of the council on the issuance of RCMCs and various advantages for its members.

Dr P V Appaji

What has been the criteria for allotting RCMC? Is it based on the status of the exporter or quality standards of products?

The RCMC is not issued on the basis of quality of products or status of the export company. Any pharma company, which intends to export its products should be registered with Pharmexcil to avail the benefits under the foreign trade policy of the Government of India. The registered members can avail benefits extended by Director General Foreign Trade like Duty Entitlement Pass Book (DEPB) scheme and others.

Is it mandatory for exporters to have RCMC? What are the other advantages of RCMC?

An RCMC holder apart from getting benefits under foreign trade policy will be entitled to participate in foreign delegations and avail 90 per cent reimbursement. Moreover, around 50 per cent of the charges incurred for registration of the product in foreign countries will be reimbursed. Further, the members can avail of discount of around 50 per cent on the charges for booking a stall at trade fairs and exhibitions organized by Pharmexcil. The council will route trade enquiries from members to the embassies of various countries and gives the feedback to them. Apart from all these advantages, Pharmexcil will act as a facilitator between the exporters and the government and also keeps its members updated on the policies and export scenario.

What is the role played by Pharmexcil in facilitating financial assistance from the government to the exporters?

The government extends 25 per cent financial assistance on R&D projects not exceeding Rs 50 lakhs per project. Even big pharma companies are taking part and availing the financial assistance. There are substantial funds to support projects engaged in R&D. These funds are chanelled through Pharmexcil.

Since Pharmexcil is a new organisation, how well is it equipped to cater to the large number of exporters in the pharma sector?

Within a short span of time, Pharmexcil has many achievements to its credit. We have taken two major delegations to CIS and SE Asian countries. These business trips have been fruitful. The membership has recorded quantum growth. The council has held seminars and exhibitions in addition to organising a visit by African officials to India.

How do you view the potential of the bulk drug sector in Hyderabad, which accounts for a major chunk of the exports?

The bulk drug sector in Hyderabad has immense potential and I feel that they should take advantage of Pharmexcil being located in this city and utilise the opportunity to the maximum extent.

The RCMC notification came into effect from April 1st. What has been the response and how many members have been enrolled since then?

After the notification has given exclusive rights to Pharmexcil to issue RCMCs, we have taken all measures to reach the members and enroll new members. A large number of applications are being received. The applications from exporters are being promptly processed in order to prevent them encountering problems at DGFT.