The Planning Commission is examining a proposal from the Department of Pharmaceuticals to address the environmental pollution caused by the pharmaceutical sector with special focus on small and medium scale units.

The project, to be implemented with the support of the United Nations Industrial Development Organisation (UNIDO) has been finalized by the department and sent to the Planning Commission. The exact cost of the project would be known only after the in-principle approval of the panel, sources said.

The proposal is titled "South-South Programme for improving Environmental Performance, Waste Minimization and Enhancing Productivity of Pharmaceutical SMEs through the application of Cleaner Production Technique." This project aims at addressing environmental pollution in the pharmaceutical sector through technical support for dealing with environmental hazards, safety and waste minimization etc. Besides, it strengthens institutional linkage and capacity building in both the target countries-India and South Africa.

The UNIDO, which is increasing its focus on developing countries known as the South, has been some of the initiatives for cleaner manufacturing in the country during the current Five Year Plan. In the last two and a half decades, the share of the South in world manufacturing and exports has doubled and South-South trade is rapidly increasing. The UNIDO has launched South-South Cooperation Centres in some of the more advanced developing countries like India, China, South Africa, Egypt and Brazil.

In February 2007, the first UNIDO Centre for South-South Industrial Cooperation (UCSSIC) was formally launched in New Delhi. It assists in adapting successful policies and practices among developing countries in attracting investment, promoting trade and developing industries and disseminates best practices among MSMEs, thus making them more productive and competitive. The centre also transfers modern and suitable technologies and tailors them to the specific needs of recipient countries besides improving networking among developing countries in investment promotion and industrial development.

The proposed project to help the SMEs in the Indian pharma sector is part of the UNIDO initiatives for cleaner industry. South Africa, where Indian generics have a big market, has been taken for improving linkage.

Recently, the UNIDO also has decided to create ways for fostering local pharmaceutical industries in developing countries to produce essential generic drugs. The Board also discussed project on "Strengthening the local production of essential generic drugs in developing countries," financed by Germany. The project aims to help expand and upgrade small and medium enterprises in a number of developing and least developed countries, mainly in Africa and in Asia, to locally manufacture essential generic drugs.