May-June 2019

Medical Plastic Data Service Magazine

 

A TECHNO-ECONOMIC NEWS MAGAZINE FOR MEDICAL PLASTICS AND PHARMACEUTICAL INDUSTRY

Our 27th Year of Publication
Page  6 of 6
 

Cover Story

NMDPC : To Catalyse Growth of Medical Device Sector in India

Dr. Jitendar Sharma
Member Secretary, National Medical Devices Promotion Council and MD & CEO AMTZ

An Introduction to NMDPC: The National Medical Devices Promotion Council (NMDPC) has been set up as a catalyst-organization for facilitating and promoting the Indian Medical Device Industry, under the aegis of Department for Promotion of Industry and Internal Trade (DPIIT) on 7th December 2018, with Andhra Pradesh MedTech Zone (AMTZ) as its technical secretariat. On 14th of December 2018, the then Hon’ble Minister of Commerce & Industry inaugurates NMDPC at the “4th WHO Global Forum on Medical Devices”, held at the AMTZ Campus, Visakhapatnam, Andhra Pradesh.

NMDPC with its core objective to promote and facilitate the Medical Device Industry and create a nurturing ecosystem (which the sector lacked), is poised to be the National Forum now to discuss and consult stake holders of the Medical Device ecosystem (ranging from policy makers, start-ups, incubators, R&D institutions-to-manufacturers of vivid size and capabilities) and partner with organizations of international repute, who can add value and prescribe solutions pertaining to growth of medical device manufacturing and exports.

As the apex Council for facilitating and promoting the Medical Device industry and to position India as a pioneer in Medical Device and Health technology space, following are some key activities undertaken by the council:

• Policy Facilitation
• Strategic Forums (Policy, Best Practices, Partnerships)
• Dissemination of International Norms
• Industry Support (Manufacturing, Regulatory Challenges, etc.)
• Market Access

Boosting Indigenous Manufacturing-Enabling Level Playing Opportunities to Harness True Potential: Since inception, the council has been interacting closely with the stake holders from government, as well as private sectors (manufacturer/ supplier), healthcare providers and patient groups. It was found that initiatives that are directed towards benefitting the medical device manufacturers with respect to Preference to Make in India, Order 2017 or through the implementation provisions from Department of Pharma were in a way not followed in heart and spirit and doesn’t reflect in the tenders floated by many State & Central Government Agencies. Additionally, the Make-in-India proposition may also take a back seat if timely payments are not released to the manufacturers or suppliers whose payments are pending for year/s together from the State/ Central Health Corporations. Though the manufacturers are integral part of the value chain, however such discouraging instances may lead to a severe cash crunch to them or land them in bankruptcy or put a threat to their existence or sustainability of their existing projects, performing R&D, finding markets, commissioning newer initiatives, all of them can take hit for the same reason.

Tender Deviations: NMDPC has reviewed more than 200 odd tenders across the country from the period April 2019 to July 2019, and have found 38% of them deviating in terms of mandating foreign regulations or some of them are even upright asking specific company for supplying or mentioning their brand name, thus killing fair competition and are once again not adhering with General Financial Rules, 2017 (GFR) guidelines. Such tenders are possibly biased, and are against the larger interest of the manufacturing community, especially narrowing the scope of Indian manufacturers to participate in the state/ central led procurement process.

Table1: Total number of Tenders studied from April to July 2019

No. Period Deviations Without Deviations Total Tenders
1 1 - 30 April 2019 8 15 23
2 1 - 15 May 2019 8 16 24
3 16 - 31 May 2019 16 41 57
4 1 - 15 June 2019 11 13 24
5 16 - 30 June 2019 11 20 31
6 1 - 15 July 2019 8 15 23
7 16 – 31 July 2019 18 12 30
  Total 80 132 212
  Total Percentage of Deviations

38%

  Total Percentage without Deviations

62%

From Table 1, the percentage of tender deviation is approximately 38% accounting to 80 tenders which are asking exclusively for foreign regulatory approvals in India. Of these deviations the GoI or Central government organizations have shown overall 26% deviation while Haryana state government alone has shown about 20% deviation as shown in graph 1 below.

Graph 1: Tender Deviations amongst State and Central organizations

Considering the high value and importance of medical device equipments in the field of Radiology and Cardiology, NMDPC has further assessed deviation of tenders into three categories, namely – 1. Radiology, 2. Cardiology, and 3. Others. It is found that of the total deviations 36% of tender deviations fall under Radiology and Cardiology categories.

Way Forward: Transparent procurement practices with adherence to Public Procurement Order 2017 can open a lot of avenues for Indian manufacturers, provided payments are also settled with the manufactures in a timebound manner. Secondly, National Medical Devices Promotion Council realizes that there is a distinct ecosystem advantage which can be provided to the medical device stakeholders while operating out of a cluster, considering Andhra Pradesh MedTech Zone (AMTZ) as a model cluster where common resources like infrastructure, scientific facility, testing facility, sterilization facility, regulatory enablement and market access are in complete synchrony with manufacturing. Replicating such clusters and linking them with each other or linking them to the existing clusters for enabling smooth flow of services can go a long way as far as import substitution is concerned, and thus making the best use of the capabilities which already exists..

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