Govt revamps technology upgradation scheme for pharma sector

13 Mar 2024

Govt revamps technology upgradation scheme for pharma sector

The union government on Monday announced a revamped scheme of assistance for technology upgradation in the pharmaceuticals sector – a move aimed at ensuring that Indian industries are on par with global standards.

The Department of Pharmaceuticals of  the ministry of chemicals and fertilisers announced the Revamped Pharmaceuticals Technology Upgradation Assistance Scheme (RPTUAS)after a comprehensive review by a steering committee  in view of the changes in announced by the 

The approval of the revised Scheme follows a comprehensive review by a steering committee in the light of changes in Schedule-M of the Drugs and Cosmetics Rule, 1945.

The revision in the scheme are intended to support upgradation of the pharmaceutical industry to the revised Schedule-M and WHO-GMP standards, so as to improve quality and safety of pharmaceutical products manufactured in India.

The revised scheme also broadens the eligibility criteria for assistance under technology upgradation scheme to include all micro, small and medium pharmaceutical manufacturing units with turnover of less than Rs500 crore that require technology and quality upgradation.

The scheme, however, will focus on the needs of MSMEs, offering support to smaller players in achieving high-quality manufacturing standards.

The revised scheme moves away from the credit-linked approach and introduces a reimbursement of subsidies. This will help the pharma units to diversify financing options, facilitating wider adoption of the scheme.

The revamped scheme supports a broader range of technological upgrades, making improvements such as HVAC systems, water and steam utilities, testing laboratories, stability chambers, clean room facilities, effluent treatment, waste management etc eligible activities, making support more comprehensive.

It also introduces a dynamic incentive structure under which pharmaceutical units with less than Rs50 crore turnover will be eligible for 20 per cent subsidy for upgradation activities, while those with turnover of Rs50 crore to Rs250 crore will get 15 per cent subsidies for such activities and units having turnover of more than Rs250 crore but less than Rs500 crore will be eligible for 10 per cent subsidy for upgradation activities.

There is also a provision for integration of the central scheme with state subsidies, allowing pharma units to derive maximum support for technology revamp.

The scheme will make use of a project management agency to ensure transparency, accountability and efficiency in allocation of resources.


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