Jago Grahak Jago

Jago Grahak Jago Logo

Govt announces revamped technology upgradation assistance scheme for pharma units

Mar 12,2024

The Department of Pharmaceuticals (DoP) on Monday announced its Revamped Pharmaceuticals Technology Upgradation Assistance (RPTUAS) scheme to help upgrade the technological capabilities of the pharmaceutical industry and ensure its alignment with global standards.

The scheme will cover pharmaceutical units with turnover of less than Rs 500 crore for the last three years. These units will be eligible for incentive, subject to a maximum of Rs 1 crore.

According to the pharma department, units with less than Rs 5 crore turnover will get an incentive of 20% of investment under eligible activities.

The units with turnover ranging from Rs 50 crore to less than Rs 250 crore will get an incentive of 15% of investment, while for those with turnover ranging from Rs 250 crore to less than Rs 500 crore, it will be 10% of investment under eligible activities.

The approval of the revised scheme follows a comprehensive review by the Scheme Steering Committee in light of the requirements of the revised Schedule-M of the Drugs and Cosmetics Rule, 1945, the pharma department said.

The new scheme has been expanded beyond micro, small and medium enterprises to include pharmaceutical manufacturing units with turnover of less than Rs 500 crore that require technology and quality upgradation.

“Preference remains for MSMEs, supporting smaller players in achieving high-quality manufacturing standards,” the department said in a statement.

The scheme proposed more flexible financing options, emphasising subsidies on reimbursement basis, over traditional credit-linked approach.

“This flexibility is designed to diversify the financing options of the participating units, facilitating a more widespread adoption of the scheme,” it said.

The scheme proposes to support a broader range of technological upgrades. The eligible activities include improvements such as HVAC systems, water and steam utilities, testing laboratories, stability chambers, clean room facilities, effluent treatment, waste management, etc.

It also allows integration with state government schemes, enabling units to benefit from additional top-up assistance.

“This collaborative approach aims to maximise support for the pharmaceutical industry in their technology upgradation efforts,” it said.

Source: Pharma

Leave a Comment

Your email address will not be published. Required fields are marked *