Govt announces schemes for pharma MSMEs
Union minister Mansukh Mandaviya said the schemes envisage technology up-gradation, setting up of common research centres, and effluent treatment plants in clusters for the pharma MSMEs.
The government on Thursday launched three schemes to strengthen the Micro, Small, and Medium Enterprises (MSMEs) in the pharmaceutical sector.
Union minister Mansukh Mandaviya noted that the schemes envisage technology up-gradation, setting up of common research centres, and effluent treatment plants in clusters for the pharma MSMEs.
The chemicals and fertilizers 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, Aatmanirbhar, more resilient, and future-ready," Mandaviya, who heads both health and chemical and fertilizers ministries, said.
The schemes provide for credit-linked capital and interest subsidy for technology upgradation of MSME units in the pharmaceutical sector, and the support of up to Rs 20 crore each for common facilities, including a 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 a proven track record to upgrade their technology.
The scheme has provisions for a capital subsidy of 10 percent 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 percent (6 percent 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 assistance of up to 70 percent of the approved project cost of Rs 20 crore, whichever is less.
In the case of the Himalayan and northeast region, the grant-in-aid would be Rs 20 crore per cluster or 90 percent of the project cost, whichever is less.
The pharmaceutical and Medical Devices Promotion and Development Scheme (PMPDS) would involve the 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 the pharma and medical device sectors.
Mandaviya asked the industry to keep upgrading to cater to evolving requirements across global markets. He stressed the importance of moving to 'value from volume'.
The minister also highlighted the government's various initiatives toward the MSME sector and informed that 40 percent of selected participants under the production-linked incentive scheme for pharmaceuticals belonged to the MSME category.
Mandaviya also emphasized the importance of demand-based research as the need of the hour and encouraged greater linkage of the industry with academia.
He noted that the 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 the ease of doing business and also reduce compliances to help the industry grow at a rapid pace.
Edited by Suman Singh