Govt announces norms for strengthening of pharma industry scheme

India Pharma Outlook Team | Saturday, 12 March 2022

Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers on Friday released guidelines for 'Strengthening of Pharmaceutical Industry (SPI)' scheme that is seen to address rising demand in terms of support required to existing Pharma clusters and MSMEs across the country to improve their productivity, quality and sustainability.

The Centre has assigned an outlay of â‚¹500 crore for the period from fiscal FY 21-22 to FY 25-26. Here are key highlights of the scheme:

1. In the Scheme, financial assistance to pharma clusters will be provided for the creation of Common Facilities. Such will not only improve the quality but also ensure the sustainable growth of clusters.

2. To upgrade the production facilities of SMEs and MSMEs so as to meet national and international regulatory standards (WHO-GMP or Schedule-M), interest subvention or capital subsidy on their capital loans will be provided under the scheme, which will further facilitate the growth in volumes as well as in quality.

3. The scheme has 3 components/sub-schemes. These are - a) Assistance to Pharmaceutical Industry for Common Facilities (APICF), to strengthen the existing pharmaceutical clusters’

capacity for their sustained growth by creating common facilities; b) Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) to facilitate Micro, Small and Medium Pharma Enterprises (MSMEs) of a proven track record to meet national and international regulatory standards; c) Pharmaceutical & Medical Devices Promotion and Development Scheme (PMPDS) to facilitate growth and development of Pharmaceutical and Medical Devices Sectors through study/survey reports, awareness programs, creation of database, and promotion of industry.

4. Under API-CF sub-scheme, support for clusters for creation of common facilities with the focus on R&D Labs, Testing Laboratories, Effluent Treatment Plants, Logistic Centres and Training Centres in this order of priority with an outlay of â‚¹178 crore for the scheme period of five years is proposed.

5. In the PTUAS sub-scheme, support for SME Industries is proposed, either through up to a maximum of 5% per annum (6% in case of units owned and managed by SC/STs) of interest subvention or through Credit linked Capital subsidy of 10%. In both cases, the loan supported under this is to a limit of 10 Crores and the eligible components of the loan has been listed in the scheme guidelines. An outlay of â‚¹300 crore has been earmarked for the sub-scheme for the scheme period of five years.

6. Further, in the PMPDS sub-scheme, knowledge and awareness about the Pharmaceutical and MedTech Industry will be promoted. This will be done by undertaking studies, building databases and bringing industry leaders, academia and policymakers together to share their knowledge and experience for the overall development of the Pharma and Medical Devices sector. An outlay of â‚¹21.5 crore has been earmarked for the sub-scheme for the scheme period of five years.

7. The units supported under this scheme is expected to act as Demonstration Firms for the pharma clusters and MSE Pharma Industries, to develop on quality and technology up-gradation fronts.