Lok Sabha Question No. 3751 (UNSTARRED), answered on 2020-03-17
Subject: Cluster Development Programme
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Devendrappa Y

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

## LOK SABHA

UNSTARRED QUESTION NO. 3751

TO BE ANSWERED ON THE 17 th  MARCH, 2020

## Cluster Development Programme

## 3751. SHRI Y. DEVENDRAPPA:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a)  the  broad  objectives  and  the  details  of  the  Cluster  Development  Programme  for pharma sector;
- (b) the funds allocated to various Clusters/Parks in the country including those at Bellary District in Karnataka;
- (c) whether the Government  has  any proposal to help further growth of the pharmaceutical industry in Bellary District in Karnataka; and
- (d) if so, the details thereof?

## ANSWER

## MINISTER IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI D. V. SADANANDA GOWDA)

- (a)    Sir,  the  Department  of  Pharmaceuticals  has  launched  a  Cluster  Development Program  for  Pharma  Sector  (CDP-PS)  scheme  in  the  year  2015  to  enhance  quality, productivity and innovative capabilities of Small and Medium Enterprises (SMEs) in the country. The broad objectives of the scheme are as under:
- (i) Strengthening  the  existing  infrastructure  facilities  in  order  to  make  Indian Pharma Industry a global leader in pharma sector;
- (ii) Providing easy access to standard testing infrastructure and value addition in the  domestic  Pharma  Industry  especially  to  SMEs  through  creation  of common world class facilities for increased competitiveness;
- (iii) Helping the industry meet the requirements of standards of environment at a reduced  cost  through  innovative  methods  of  common  waste  management system; and
- (iv) Exploiting the benefits arising due to optimization of resources and economics of scale.

This scheme provides grants in aid for facilities such as Common Testing Centre, Training Center, R&D Centre, Effluent Treatment Plant and Common Logistics Centres. It  is  necessary  to  form  a  Special  Purpose  Vehicle  (SPV)  prior  to  setting  up  of  and running  proposed  Common  Facility  Center  (CFC)  having  at  least  3  pharma  units

(including  Bulk  drug  and  Medical  Devices  units)  as  members  of  Special  Purpose Vehicle  (SPV).  The  Scheme  Steering  Committee  (SSC)  monitors  the  project  through Project  Management  Consultant  (PMC)  engaged  by  the  Department.  The  maximum limit for the grant in aid is Rs. 20.00 crore per cluster or 70% of the cost of the project, whichever is lower. The SSC accord 'in-principle' approval on primary proposal which is valid  for  6  months.  Upon  fulfillment  of  necessary  conditions,  the  SSC  accords  final approval and subsequent thereto Government grant is released.

(b)  to  (d)   The  Department  has  approved  one  proposal  of  M/s.  Chennai  Pharma Industrial  Infrastructure  Upgradation  Company  (CPIIUC)  for  installation  of  Common Effluent Treatment Plant (CETP) at Alathur, Tamil Nadu with a total project cost of Rs. 10,59,90,000/-. The Department would be funding 70% of the cost thereof, amounting to Rs.  7,41,93,000/-,  out  of  which  an  amount  of  Rs.  6,67,73,700/-  has  already  been released. The balance amount of Rs. 74,19,300/- would be released after completion of the  project.  Further,  an  amount  of  Rs.  12.00  cr  has  been  allocated  for  Cluster Development Scheme as per Budget Estimates 2020-21.  The Department has received 6 proposals under this scheme, which are under consideration. However, no proposal for establishment of cluster has been received from Bellary District in Karnataka.

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