DoP modifies guidelines for SPI scheme after deliberations with the industry

New Delhi, July 13, 2022:

The Department of Pharmaceuticals (DoP) has modified its guidelines for the scheme Strengthening of Pharmaceutical Industry (SPI) to allow an extended 30 month period for the beneficiaries of some of its schemes to complete technological upgradation from the date of first disbursement of loans.

The Department has issued a corrigendum to the guidelines it has first introduced in March, 2022, after deliberations with the industry representatives and examination of representations received in this regard.

According to a corrigendum to the guidelines it has first introduced in March, 2022, under the sub scheme of Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS), the technological upgradation as envisaged in the project proposal has to be completed in 30 months from the date of first disbursement of loans for interest subvention.

Pharma Micro, Small and Medium Enterprises (MSMEs), which availed of the benefit under the scheme for interest subvention must achieve technological upgradation within 30 months of receiving the first disbursement of loan, failing which loan will be converted into a normal loan by the lending institution.

The guidelines, prior to the corrigendum issued on July 7, held that these projects to be completed in 18 months from the date of first disbursement of loans.

Besides, the condition on forming of the Special Purpose Vehicle (SPV) for developing common facilities has also been modified.

According to the initial guideline, for the sub-scheme Assistance to Pharmaceutical Industry for Cluster Facility (APICF), the intended beneficiaries were to be pharmaceutical manufacturing units in a cluster who have come together to form a SPV to execute the project of developing a common facility. The SPV should be a separate legal entity registered under the Companies Act or Registration of Societies Act.

The clause has not been modified so that if the existing cluster is already registered under the Companies Act, the same will be considered for further processing and there is no need to form a separate cluster for the purpose.

All other provisions as contained in the scheme guidelines dated March 11, 2022 remain unchanged, said the Department.

In March, the DoP has combined the existing schemes for the development of pharmaceutical industries into a single scheme of Strengthening of Pharmaceutical Industry with modification in the scheme guidelines, to strengthen the existing infrastructure facilities with a total financial outlay of Rs. 500 crore.

The scheme is to provide financial assistance to pharma clusters for creation of common facilities to improve the quality and ensure sustainable growth of cluster; upgrade the production facilities of micro, small and medium enterprises to meet national and international regulatory standards, through interest subvention or capital subsidy; and to promote knowledge and awareness in and about the pharmaceutical and medical devices industry by taking up studies, building databases and bringing in experts from various fields to share knowledge.

The scheme will have the three existing sub-schemes Assistance to Pharmaceutical Industry for Common Facilities to strengthen existing pharma cluster capacity through common facilities, Pharmaceutical Technology Upgradation Assistance Scheme for MSMEs with proven track record to meet national and international regulatory standards, and Pharmaceutical and Medical Devices Promotion and Development Scheme (PMPDS) to conduct study/survey reports, awareness programmes, creation of database and promotion of industry - as its components.

APICF will have a financial outlay of Rs. 178.40 crore from 2021-22 to 2025-26, PTUAS will have Rs. 300.10 crore and PMPDS will have Rs. 21.50 crore as financial outlay for the same period.

DoP will provide overall policy coordination and management support for the scheme and the proposals will be considered by the Scheme Steering Committee headed by Secretary of DoP, with the Financial Advisor, Joint Secretary (Schemes), of DoP, Drug Controller General of India and industry representatives, among others as members. PhamaBiz