Indian Govt to provide financial assistance to pharma clusters to improve productivity

With a total financial outlay of Rs 500 crore for the period from FY 21-22 to FY 25-26, the pharmaceutical department under the Ministry of Chemicals and Fertilisers released the guidelines for the Strengthening of Pharmaceutical Industry (SPI) scheme on Friday.

The scheme will address the rising demand in terms of support required for existing pharma clusters and MSMEs across the country to improve their productivity, quality and sustainability.

The SPI scheme will provide financial assistance to pharma clusters for creation of common facilities to make India a global leader in the sector.

In a bid to upgrade the production facilities of SMEs and MSMEs so as to meet national and international regulatory standards, interest subvention or capital subsidy on their capital loans will be provided to further facilitate the growth in volumes as well as in quality.

The new scheme includes three components — Assistance to Pharmaceutical Industry for Common Facilities (APICF) to strengthen the existing pharmaceutical clusters’ capacity for their sustained growth by creating common facilities; Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) to facilitate MSMEs to meet national and international regulatory standards; and Pharmaceutical & Medical Devices Promotion and Development Scheme (PMPDS) to facilitate growth and development of pharmaceutical and medical devices Sectors through study and survey reports, awareness programmes, creation of database and promotion of industry.

The API-CF sub-scheme will provide support for creation of common facilities with the focus on R&D labs, testing labs, effluent treatment plants, logistic centres and training centres with an outlay of Rs 178 crore for five years.

An outlay of Rs 300 crore has been earmarked for the PTUAS sub-scheme for five years to support SME industries either through up to maximum of 5 per cent per annum (6 per cent in case of units owned and managed by SC/STs) of interest subvention or through credit linked capital subsidy of 10 per cent.

Under the PMPDS sub-scheme, knowledge and awareness about the pharmaceutical and MedTech industry will be promoted by undertaking studies, building databases and bringing industry leaders, academia and policy makers together to share their knowledge and experience for the overall development of the pharma and medical devices sector.

An outlay of Rs 21.5 crore has been earmarked for this sub-scheme for the scheme period of five years.

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Arushi Sana is the Founder of Santerra Living and Co-Founder of NYK Daily. She was awarded the Times Power Women of the Year 2022 and Times Digital Entrepreneur of the Year 2023. Arushi is also a Sustainability Consultant for organisations looking to reduce their carbon footprint and also works with brands on social media to help them carve a presence in that niche. She holds a Degree in Computer Science Engineering from VIT University and a Diploma in Marketing Analytics from IIM Nagpur. Her interest in Sustainable Living and Interior Design led her to start a Sustainable e-Marketplace where customers can buy eco-furniture and eco-friendly products for everyday use. Arushi is a writer, political researcher, a social worker, a farmer and a singer with an interest in languages. Travel and nature are the biggest spiritual getaways for her, and she aims to develop a global community of knowledge and journalism par excellence through this News Platform.

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