Mumbai: Export-Import Bank of India (Exim Bank) said on Monday it would provide long-term finance to Indian drugmakers to help them set up manufacturing plants compliant with standards specified by the US Food and Drug Administration.
Export-oriented companies can avail of finance from the bank for a maximum repayment period of 10 years with a moratorium of up to three years, it said in a statement.
Several Indian drugmakers such as Ranbaxy Laboratories, Wockhardt and Cadila Healthcare over the last three years have faced import alerts from the US drug regulator due to non-compliance with quality standards.
“To increase market share, the industry needs to penetrate deeper in the regulated markets which calls for accreditation of more and more facilities of Indian manufacturers,” the bank said.
A US FDA-approved bulk drugs unit can cost up to Rs. Rs.300 million ($5.01 million)-Rs.400 million ($6.68 million) in India and the cost is between Rs.500 million-Rs.600 million for a formulations plant, the bank said.