Expenditure of Rs 500 cr for a program to support existing pharmaceutical clusters, MSME: Govt


In a bid to improve the productivity, quality and sustainability of existing pharmaceutical clusters and micro, small and medium enterprises (MSMEs) across the country, the Pharmaceuticals Department of the Ministry of Chemicals and Fertilizers on Friday released the directives of the “Strengthening the Pharmaceutical Industry (SPI)” programme. The program has a total financial outlay of Rs 500 crore for the period from FY21-22 to FY25-26.

The objectives of the program are to strengthen the existing infrastructure to make India a world leader in the pharmaceutical sector, the government said.

Under the program, financial assistance to pharmaceutical clusters will be provided for the establishment of joint facilities. “This will not only improve the quality but also ensure the sustainable growth of the clusters. In addition, in order to upgrade the production facilities of SMEs and MSMEs to meet national and international regulatory standards (WHO-GMP or Schedule-M) , interest a grant or capital grant on their capital loans will be provided, which will further facilitate the growth of volumes as well as quality,” the Ministry of Pharmaceuticals said in a statement.

The Regime has 3 components/sub-regimes: Assistance to the Pharmaceutical Industry for Common Facilities (APICF), to strengthen the capacity of existing pharmaceutical clusters for their growth supported by the creation of common facilities; Pharmaceutical Technology Upgrading Assistance Program (PTUAS) to help proven MSMEs meet national and international regulatory standards and Pharmaceutical and Medical Devices Promotion and Development Program (PMPDS) to facilitate the growth and development of the pharmaceutical and medical device sectors through study/survey reports, outreach programs, database creation and industry promotion.

Extensive stakeholder consultations were held to revise the guidelines of the hitherto APICF/PTUAS and PPDS sub-schemes to meet the expectations of Pharma clusters and Pharma and MedTech Industry SMEs to upgrade their facilities on the frontlines of Quality and Technology.

Under the API-CF sub-programme, support to clusters for the creation of common facilities with emphasis on R&D laboratories, testing laboratories, effluent treatment plants, logistics centers and training centers in this order of priority with an expenditure of 178 Crores for the program period of five years is proposed.

Under the PTUAS sub-scheme, support is offered to approximately SME Industries, up to a maximum of 5% per annum (6% in the case of SC/ST owned and managed units) interest, or by a loan-linked capital grant of ten%. In either case, the loan supported under this is limited to 10 crores and the eligible components of the loan have been listed in the program guidelines. An expenditure of 300 Cr has been allocated to the sub-scheme for the period of five years.

Under the PMPDS sub-program, knowledge and awareness of the pharmaceutical industry and MedTech will be promoted. This will be done by undertaking studies, creating databases and bringing together industry leaders, academics and policy makers to share their knowledge and experience for the overall development of the pharmaceutical and medical device sector. An expenditure of 21.5 Cr has been allocated to the sub-scheme for the five-year period. “It is expected that the units supported under this program will act as demonstration companies for Pharmaceutical Clusters and MSE Pharma Industries, to develop on the fronts of quality and technological upgrading,” the government said in a statement.

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