A study in largesse

The department of science and technology, which spearheads almost all the research and development activity in the area, hopes to get a 30-40% increase in the budgetary allocation â€” a trend that has been in vogue for the past five years. In 2003-04, the DST was granted Rs 800 crore â€” a hike of Rs 175 crore over the previous year and Technology Bhavan is expecting similar largess from the United Progressive Alliance government. Topping its wish list is an increase in the corpus fund created for drug development from the present Rs 150 crore to Rs 150 crore annually. Says DST secretary, VS Ramamurthy: â€œInterest rates have fallen, and the interest accruing is less than Rs 10 crore, which is next to nothing for the high value, exclusively targeted drug delivery work being undertaken.â€� The Pharmaceutical Research and Development Support Fund â€” announced in Budget 2002 by then finance minister Yashwant Sinha â€” was created under the Technology Development Board created in 1996. Though the corpus announced was Rs 150 crore, the budgetary allocation that has flowed in is just Rs 25 crore so far. So the DST has demanded that it be given the remaining Rs 125 crore as well as a Rs 150 crore allocation on an annual basis. This is primarily because of industry pleas against the â€œinadequateâ€� fund. A corpus fund is one in which only the interests that accrue are channelised into R&D, but by making the corpus an annual budgetary sanction, the DST hopes to encourage drug development in India. The issue came to fore after the Dr Mashelkar Committee recommended such a project â€” albeit with a larger fund, generated through a cess on pharmaceutical sales. With the UPA proving to be a cess-friendly regime, is it possible that this proposal would resurface. â€œNo, the DST is not happy with the cess,â€� clarifies Mr Ramamurthy. Not only is it difficult to track day-to-day information on collections, the Finance Ministryâ€™s assessment of the same, and clearance by Parliament is required before an expenditure is made. Hence the Rs 150-crore annual allocation is preferred. This apart the DST is also projecting an additional Rs 85 crore to fund R&D activities of its autonomous institutes â€” particularly the Sreechitra Tirunal Institute for Medical Sciences & Technology, which is working on bio-implants and material testing and certifying â€” the only accredited body in India for the same. Another DST dream is doubling the allocation for the National Innovation Foundation, which encourages grassroot inventors. Started three years ago, this Rs 20-crore project has grown popular with as many as 20,000 entries from small farmers, entrepreneurs and non-scientific people. New areas like fuel cell technology and nanotechnology would also require an additional Rs 20 crore. With DST already sinking Rs 20 crore into initial work in the area, it has projected a Rs 40-crore requirement to take it further.

A study in largesse

The department of science and technology, which spearheads almost all the research and development activity in the area, hopes to get a 30-40% increase in the budgetary allocation - a trend that has been in vogue for the past five years.

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