Context: Recently, Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers released guidelines for ‘Strengthening of Pharmaceutical Industry (SPI)’ scheme.
Strengthening of Pharmaceutical Industry (SPI) Scheme

• The scheme addresses the demand and requirement for support to already existing pharma clusters and MSMEs to improve productivity, quality and sustainability.
• The Centre has assigned an outlay of Rs 500 crore for the period from fiscal FY 2021-22 to FY 2025-26.

Objective of the Scheme

• To strengthen the existing infrastructure facilities in order to make India a global leader in Pharma Sector.
• Financial assistance to pharma clusters will be provided for creation of Common Facilities to improve the quality and ensure the sustainable growth of cluster.
• To upgrade the production facilities of SMEs and MSMEs, to meet national and international regulatory standards, by providing interest subvention or capital subsidy on their capital loans, which will facilitate the growth in volumes as well as in quality.
• To promote knowledge and awareness in and about the Pharmaceutical and Medical Devices Industry.

Components of the Scheme
The Scheme shall have 3 components/sub-schemes:
1. Assistance to Pharmaceutical Industry for Common Facilities (APICF)

• It would provide support for clusters for the creation of common facilities with the focus on R&D labs, testing laboratories, effluent treatment plants, logistic centres and training centres.
• Objective: To strengthen the existing pharmaceutical clusters’ capacity for their sustained growth by creating common facilities.

2. Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS)

• The support for about SME Industries is proposed, either through up to maximum of 5% per annum (6% in case of units owned and managed by SC/STs) of interest subvention or through Credit linked Capital subsidy of 10%.
• Objective: To facilitate Micro, Small and Medium Pharma Enterprises (MSMEs) of proven track record to meet national and international regulatory standards.

3. Pharmaceutical & Medical Devices Promotion and Development Scheme (PMPDS)

• Objective: To facilitate growth and development of Pharmaceutical and Medical Devices Sectors through study/survey reports, awareness programs, creation of database, and promotion of industry.

Note: Production Linked Incentive (PLI) Scheme aims to promote domestic manufacturing of critical Key Starting Materials (KSMs)/Drug Intermediates and Active Pharmaceutical Ingredients (APIs) in the country.

By: Shubham Tiwari