India launches revamped scheme to help advance pharma industry’s tech capabilities

Key features of the revised scheme include expanded eligibility criteria, now encompassing pharmaceutical manufacturing units with a turnover of less than ₹500 crore, besides micro, small, and medium enterprises (MSMEs). The scheme prioritises MSMEs to aid smaller players in achieving high-quality manufacturing standards.

Moreover, the scheme introduces flexible financing options, emphasising subsidies on a reimbursement basis over the traditional credit-linked approach.

In alignment with the revised standards, the scheme offers comprehensive support for technological upgrades, covering a range of improvements such as HVAC systems, water and steam utilities, testing laboratories, clean room facilities, and waste management, among others.

A release said all pharmaceutical units with the following average turnover for the past three years will be eligible for the incentive, subject to a maximum of ₹1 crore per unit:
Turnover Incentives
Turnover less than ₹50 crore 20% of investment under eligible activities
Turnover from ₹50 crore to less than ₹250 crore 15% of investment under eligible activities;
Turnover from ₹250 crore to less than ₹500 crore 10% of investment under eligible activities.
The updated scheme permits coordination with state government initiatives, providing units with supplementary assistance. The scheme also introduces a rigorous validation process facilitated by a Project Management Agency, guaranteeing transparency, accountability, and effective resource allocation.

The revised scheme comes after a review by a committee that considered the requirements of the updated Schedule-M of the Drugs and Cosmetics Rule, 1945, issued by the Department of Health & Family Welfare on December 28, 2023. Aimed at supporting the industry’s transition to the Revised Schedule-M and WHO-GMP standards, the guidelines focus on enhancing the quality and safety of domestically manufactured pharmaceutical products.