Strengthening of Pharmaceutical Industries: Ministry Releases Guidelines

Strengthening of Pharmaceutical Industries: Relevance

• GS 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

फार्मास्युटिकल उद्योगों का सुदृढ़ीकरण: मंत्रालय ने दिशा-निर्देश जारी किए 

Strengthening of Pharmaceutical Industries: Context

• Recently, Ministry of Chemicals and Fertilizers has released the guidelines for the scheme “Strengthening of Pharmaceutical Industry (SPI) to address the rising demand in terms of support required to existing Pharma clusters and MSMEs across the country.

Strengthening of Pharmaceutical Industries:Key points

• The scheme has been launched with a total financial outlay of Rs.500 Cr for the period from FY 21-22 to FY 25-26.
• The scheme is aimed at improving the productivity, quality and sustainability of pharma clusters.
• The objectives of the scheme “Strengthening of Pharmaceutical Industry (SPI) are to strengthen the existing infrastructure facilities in order to make India a global leader in the Pharma Sector.
• Under the Scheme, financial assistance to pharma clusters will be provided for creation of Common Facilities.
• This will not only improve the quality but also ensure the sustainable growth of clusters.
• Interest subvention or capital subsidy on their capital loans will be provided to upgrade the production facilities of SMEs and MSMEs so as to meet national and international regulatory standards.

Strengthening of Pharmaceutical Industries: Components

The Scheme has 3 components / sub-schemes:

• Assistance to Pharmaceutical Industry for Common Facilities (APICF), to strengthen the existing pharmaceutical clusters’ capacity for their sustained growth by creating common facilities;
  • Under this, 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 178 Cr for the scheme period of five years is proposed.
• Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) to facilitate Micro, Small and Medium Pharma Enterprises (MSMEs) of proven track record to meet national and international regulatory standards.
  • Under the PTUAS sub-scheme, support for about SME Industries is proposed, either through up to 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%.
  • An outlay of 300 Cr has been earmarked for sub scheme for the scheme period of five years.
• 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.
  • Under the PMPDS sub-scheme, knowledge and awareness about the Pharmaceutical and MedTech Industry will be promoted.
• An outlay of 21.5 Cr has been earmarked for the sub scheme for the scheme period of five years.

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