Govt to set up medicine plant in Manikganj

To reduce private companies' dominance in the pharmaceutical sector and increase export, the government has decided to expand state-owned pharmaceutical Essential Drugs Company Limited (EDCL) by setting up a modern plant in Manikganj.

Executive Committee of the National Economic Council (Ecnec) approved the "Essential Drugs Company Limited, Manikganj Plant Establishment" project yesterday, with an estimated cost of Tk 1,905.26 crore.

The existing capacity of the EDCL could not meet the demand for  medicine in the country as the plant in Tejgaon is situated only on 1.75  acres of land. The proposed one in Manikganj will be 18 times larger than the current one.   

The approval came from the Ecnec meeting presided over by its chair and Prime Minister Sheikh Hasina, who joined it virtually from Gono Bhaban.

The government will bear the whole expenditure, 60 percent of which will be met by loans and the rest from equity.

"Not only RMG, but we also have huge prospects in the pharmaceutical sector as well. Our medicines are reaching the USA, Russia and Europe. That's why we want to increase the manufacture for the global market," Planning Minister MA Mannan told reporters after the meeting.

"Local private companies often increase the price of medicine. In such cases, EDCL will sell those items at a lower price and ensure a check and balance," the minister added.

EDCL currently has three medicine manufacturing units in Dhaka, Bogura and Gopalganj, from where medicines are supplied to the government's central medical store (CMS) and different organisations under the health directorate.

About 31.5 acres of land will be acquired in Manikganj and 6.071 percent of the total estimated cost will be spent for the purpose.

Equipment and machinery procurement will require 59.247 percent of the total estimation and about 21.662 percent will be required to construct different establishments.

Nasima Begum, member (secretary) of the planning commission, said EDCL only gets loans and equity from the government. "The organisation can repay the loan," she said.