DoP combines existing schemes to announces new scheme Strengthening of Pharmaceutical Industry

New Delhi, March 14, 2022:

The Department of Pharmaceuticals (DoP) has combined the existing schemes for the development of pharmaceutical industries into a single scheme of Strengthening of Pharmaceutical Industry (SPI) 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 (APICF) to strengthen existing pharma cluster capacity through common facilities, Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) 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.

The SSC would engage the services of an agency, through an open transparent and competitive bid process to act between the SSC and the beneficiary as a bridge and catalyst.

APICF will cater to the requirements of manufacturing units as a Special Purpose Vehicle (SPV) with a minimum of five pharma units as members, to execute project of developing common facility. The limit of incentive will be 70% of the approved project cost or Rs. 20 crore whichever is less. In the case of Himalayan states and states in the North East Region, the grant-in-aid would be Rs. 20 crore per cluster or 90 per cent of the project cost of the common infrastructure facilities, whichever is less.

The guideline issued by DoP also details the terms of utilisation of incentive, eligible activities, project proposal and its components and other details of each of the sub-schemes.

Any unutilised budgetary allocation during a financial year for one of the component of the scheme can be used for the other two components with approval of the secretary, DoP after obtaining necessary approvals. PharmaBiz