Govt rolls out schemes for pharma sector MSMEs

PTI, Jul 22, 2022, 8:59 AM IST

The government on Thursday launched three schemes to strengthen Micro, Small and Medium Enterprises (MSMEs) in the pharmaceutical sector.

Union minister Mansukh Mandaviya noted that the schemes envisage technology upgradation, setting up of common research centres and effluent treatment plants in clusters for the pharma MSMEs.

Small companies should be able to upgrade their facilities to global manufacturing standards, he said.

The chemicals and fertilisers ministry rolled out the schemes under the banner of ‘Strengthening Pharmaceuticals Industry’ (SPI).

”I believe the pharma MSME industry will greatly benefit from the schemes. The new schemes have many benefits that will go a long way in making the Indian pharmaceutical industry, Atma Nirbhar, more resilient and future-ready,” Mandaviya, who heads both health as well as chemical and fertilisers ministries, said.

The schemes provide for credit linked capital and interest subsidy for technology upgradation of MSME units in pharmaceutical sector, as well as support of up to Rs 20 crore each for common facilities, including research centre, testing labs and ETPs, in pharma clusters.

SIDBI will be the project management consultant for implementing the scheme. The Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) would facilitate pharmaceutical MSMEs with proven track record to upgrade their technology.

The scheme has provisions for a capital subsidy of 10 per cent on loans up to a maximum limit of Rs 10 crore with a minimum repayment period of three years or interest subvention of up to 5 per cent (6 per cent in case of units owned by SC/ST) on reducing balance basis.

Similarly, Assistance to Pharma Industries for Common Facilities Scheme (API-CF) would strengthen the existing pharmaceutical clusters’ capacity for sustained growth. It provides for an assistance of up to 70 per cent of the approved project cost or Rs 20 crore, whichever is less.

In case of Himalayan and north-east region, the grant-in-aid would be Rs 20 crore per cluster or 90 per cent of the project cost, whichever is less.

Pharmaceutical and Medical Devices Promotion and Development Scheme (PMPDS) would involve preparation of study reports on topics of importance for the Indian pharma and medical device industry.

The scheme is aimed at creating a database of pharma and medical device sectors. Mandaviya asked the industry to keep upgrading in order to cater to evolving requirements across global markets.

He stressed the importance of moving to ‘value from volume’.

The minister also highlighted the various initiatives of the government towards the MSME sector and informed that 40 per cent of selected participants under the production-linked incentive scheme for pharmaceuticals belonged to the MSME category.

Mandaviya also emphasised the importance of demand-based research as the need of the hour and encouraged greater linkage of industry with academia.

He noted that the Prime Minister Narendra Modi-led government is working relentlessly towards strengthening the pharma industry.

”It (schemes) will increase investment, encourage research and innovation and enable the industry to develop futuristic products and ideas,” the minister said, adding that the government is working to enhance ease of doing business and also reduce compliances to help the industry grow at a rapid pace.