Page 144 - CW E-Magazine (28-11-2023)

Top Stories Pharmaceuticals

FUTURE PLANS ‘LIFE SCIENCES SUMMIT 2023’
ONGC to turnaround OPaL by FY25; scout ‘India must utilise its technical resources & man-

for strategic investor by FY27 power to become a world leader in pharmaceuticals’

Oil and Natural Gas Commission vestment has to be done to correct its about Rs. 1-lakh crore in setting up two India must utilise its technical R&D, and support through BIRAC to added, will be to facilitate improve-
(ONGC) will bring in a strategic partner capital structure”. petrochemical plants to convert crude resources, demographic dividend, skilled start-ups, are conducive to growth. ments in the regulatory framework, to
in ONGC Petro-additions Ltd. (OPaL) oil directly into high-value chemical manpower, forward looking govern- make it transparent, simple, and harmo-
by FY27, after the state-run company Elaborating on the plans for OPaL, products. ment policies and economies of scale Important to reform business models nised; and to promote R&D.
infuses Rs. 18,365-crore in the Gujarat- Mr. Adhikari said strategically ONGC to become a world leader in pharma- Dr. G. V. Prasad, Chairman, CII
based petrochemicals venture and is trying to infuse some capital so that it “We have plans to invest Rs. ceuticals. This was stated by Mr. Arunish National Committee on Pharmaceuti- ‘$200-bn industry by 2030’
makes it profi table by FY25. becomes sustainable. In FY24, the fi rm 1,00,000-crore by 2028 or 2030 in two Chawla, Secretary, Department of cals, and Co-Chairman & Managing Later while speaking to media-per-
is not expected to make any profi ts. How- projects in two separate states,” said Pharmaceuticals, Ministry of Chemi- Director, Dr. Reddy’s Laboratories Ltd., sons on the sidelines of the event,
OPaL is a mega petrochemical com- ever, once the approval from the Union Mr. Adhikari. One project is likely to cals & Fertilisers, while speaking at the stressed the importance of reforming Mr. Chawla said that the Indian drugs,
plex, which is spread over 5 sq km in Cabinet is taken for investments over be set up by ONGC on its own and the CII’s ‘5th Life Sciences Summit 2023’ business models and global collabo- pharma and med-tech industry could touch
Dahej, with a capacity to produce 14- Rs. 5,000-crore, the petrochemicals venture other in a joint venture. organised in New Delhi recently. ration. He stated that India is now a $200-bn by 2030. “The med-tech, drugs
lakh tonnes of polymers and 5-lakh will be made profi table by FY25. force in supply of APIs and vaccines, and pharmaceuticals industry (in India)
tonnes of chemicals. Crude oil-to-chemicals (COTC) Mr. Chawla emphasised that India while biosimilars are a major area driv- was valued at $20-bn in 2020 and has
“After capital infusion, ONGC’s technology allows the direct conversion has largest number of US FDA- ing growth. CII’s work in the sector, he been achieving consistent double-digit
In a recent investor call, ONGC’s share will be around 96 per cent. We of crude oil to high-value chemical pro- approved plants, exports drugs to 200 noted, will focus on promoting vertical growth year-on-year. And by working
Executive Director (Chief Business are expecting that by FY25, it will be ducts instead of traditional transportation countries with value of more than $50-bn integration in supply chain; strengthen- with the industry, private investment,
Development and Joint Ventures port- turned around after infusion of capital fuels. It enables the production of chemi- and accounts for two-third of WHO’s ing domestic manufacturing to reduce policy interventions like the produc-
folio), Mr. Deb Adhikari, said, “OPaL and ensuring a sustainable feedstock cals exceeding 70 percent to 80 percent global requirements of vaccines. While import dependency; strengthening the tion-linked incentives, strengthening of
is having some distorted capital struc- for OPaL. By FY27, we will try to in- of the barrel-producing chemical feed- innovation is on the rise, he called for ecosystem for innovation including R&D, we hope to become $200-bn by
ture. So, ONGC is trying to correct it. fuse a new equity partner. We would stock as opposed to about 10 per cent in a streamlined innovation strategy, in through industry-academia collabo- 2030,” he said.
In that regard, the Ministry of Petroleum & like to bring down ONGC’s equity a non-integrated refi nery complex. which silos between academia, labora- ration; improving market access; and
Natural Gas had advised an expert by 50 percent so that it remains a jv tories, and industry are broken. “A shift addressing regulatory issues at national In August, the government intro-
committee to be constituted. As per the of ONGC only and not a subsidiary,” ONGC aims to capitalise on this is required from publications to patents and State levels for improving the ease duced the Scheme for Promotion of Re-
advice of the expert committee, which Mr. Adhikari explained. trend, with plans to substantially ex- and a mechanism for research-oriented of doing business. search and Innovation in the Pharma-
is headed by a former Secretary of pand its chemical and petrochemical sponsored degrees from industry is the ceutical and Medical Technology
Government of India, the (ONGC) board Rs. 1-lakh crore investment in portfolio from the current 4.2-million need of the hour to foster innovation.” Dr. Rajesh Jain, Chairman, CII Sector (PRIP), 2023, under the National
has submitted some recommendations. petchem ventures tonnes per annum to 8.5-9-million Dr. Jitendra Kumar, Managing Direc- National Committee on Biotechnology, Policy on Research & Development
About Rs. 18,365-crore additional in- ONGC is also planning to invest tonnes by 2030, Mr. Adhikari said. tor, Biotechnology Industry Research and Chairman & Managing Director, and Innovation in the pharma med-
Assistance Council (BIRAC), also Panacea Biotech Ltd., emphasised that tech sector. Mr. Chawla said the PRIP
Govt. to auction 20 critical mineral blocks soon: emphasised the need for innovation. biotech incubators and start-ups are the scheme will drive growth in the pharma
He stated that government policies, growth drivers in the industry, and the sector and the Ministry is working with
Mining Secretary like 100% FDI through direct route for number of such start-ups will increase both industry and academia to “formu-
greenfi eld projects, National Policy on to 10,000 by next year. CII’s focus, he late” detailed guidelines.
The Mines Ministry is in the pro- minerals indigenous technology will be blocks for graphite could come up in CAPACITY EXPANSION
cess of auctioning 20 critical mineral explored. “We are almost ready to issue the east, primarily covering Jharkhand,
blocks, Secretary, Mr. VL Kantha Rao, the auction notice and in two weeks’ Odisha and Bihar. Dr. Reddy’s likely to invest Rs. 700-crore in H2
said. The blocks on auction will include time it should be done. Blocks (on
lithium and graphite in next two weeks. auction) would include minerals like Earlier this year, the Ministry identi- Dr. Reddy’s Laboratories Ltd. expenditure for the year to about bit, and some other portfolios as well,”
lithium, graphite, molybdenum, etc,” fi ed a list of critical minerals that (DRL), will invest about Rs. 700-crore Rs. 1,400-crore. he said. In its Q2FY24 results, DRL
Speaking to media while inaugurat- he said. include one likes lithium, cobalt and tita- for capacity expansion during the sec- had announced that it will be looking
ing the mining pavilion “Connecting nium – which are important for meeting ond half of the fi scal, Mr. G.V. Prasad, Dr. Prasad emphasised that the to expand its India business through
Beyond Mining” at the India Inter- So far, India’s only discovered the modern needs of cutting-edge techno- Co-chairman & Managing Director, funds will be used largely for expand- acquisitions, buyouts, licensing, and
national Trade Fair 2023 (IITF) in New source of lithium is in Jammu and logy sectors like electronics, telecom, DRL told Mint. This will be similar ing manufacturing facilities and some collaborations. “The funding for that
Delhi on November 14, Mr. Rao said Kashmir, while searches are on in transport and defence. A total of 30-odd to the investment in the fi rst half of new facilities in India. “Biologics is will be through separate means,” he
for mining and processing of critical Karnataka and Rajasthan. The possible critical mineral was identifi ed then. the fi scal and will take the total capital something we are expanding quite a said.

144 Chemical Weekly November 28, 2023 Chemical Weekly November 28, 2023 145

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