MSME Ministry extends CLCS Scheme support to 179 products for SSIs

The Ministry of Micro, Small and Medium Enterprises (MSME) is launching a scheme for schedule M compliance of SSIs as an extension of the existing Credit Linked Capital Subsidy Scheme (CLCSS). It is offering financial assistance to an expanded list of 179 products to support the SSIs to comply with the revised good manufacturing practice standards.

The scheme will support the SSI pharma units to avail the benefits of CLCS Scheme for financial assistance for an expanded list of products from 32 to 179 and 10 nodal agencies including SIDBI, which are issuing approval for the CLCS Scheme, will be implementing the scheme, according to the notification.

The 179 products included in the CLCSS consists air handling units and both formulation and bulk drug manufacturing machinery and equipment. As per the CLCS Scheme of the MSME, 15 per cent capital subsidy would be provided on capital investment of upto Rs 1 crore and each unit has to submit a Detailed Project Plan (DPP) for application to the bank for financial assistance including loan and subsidy.

The ministry, along with the drug regulator, will conduct awareness building workshops in collaboration with the industry organisations in 10 SSI clusters in the country, from the beginning of October, 2009. The aim of the workshops is to spread awareness and deepen the understanding of Pharma SSI manufacturers about the implementation of the scheme involving the expanded list of 179 machinery and equipment required for Schedule 'M' compliance.

Workshops will be conducted in places including Goa, Mumbai, Baddi, Ahmedabad, Bangalore, Chennai, Hyderabad, Indore and Dehradun, with the support of various National Institute of Pharmaceutical Education and Researches (NIPERs), industry associations like IDMA, SPIC, FOPE and CIPI. The Small, Medium Pharma Industry Centre (SMPIC) at NIPER Mohali will also render technical advise to assist pharma SSIs units, through the workshops. The officials feel that the response to the scheme, which was said to be miniscule earlier, could be increased through the awareness workshops.

A Scheme Implementation Committee (SIC) will be set up with the ministry officials on top and consisting members from SIDBI and NPC and selected industry nominees to lay down monitoring and evaluation formats and to meet every month to ensure proper implementation of the scheme. Besides NIPER will assist the units in physical implementation processes and capacity building projects to comply with the concerned state regulatory authority..

Under the scheme, the ministry has also plans to conduct cluster survey of the status of implementation of Schedule M and prepare a status report to identify the gaps. Further, the ministry will also prepare a plan to implement to fill the gaps for the benefit of the SSIs. There will be weekly monitoring of applications filed and sanctioned as well as disbursals of loan and adjustment of subsidy in the loan amount.