Lok Sabha Question No. 1382 (UNSTARRED), answered on 2019-02-12
Subject: Implementation of Schemes
Ministry: CHEMICALS AND FERTILIZERS
Asked by: PRABHATSINH PRATAPSINH CHAUHAN, BIDYUT BARAN MAHATO, NARANBHAI KACHHADIA

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF CHEMICALS AND PETROCHEMICALS

LOK SABHA UNSTARRED QUESTION NO. 1382 TO BE ANSWERED ON 12.2.2019

## IMPLEMENTATION OF SCHEMES

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## 1382.  SHRI P.P. CHAUHAN :

SHRI BIDYUT BARAN MAHATO:

SHRI NARANBHAI KACHHADIYA:

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

- (a) The details of the schemes launched by the Government under the Ministry of Chemicals and Fertilizers  since  the  year  2014  till  date  along  with  the  details  of  the  targets  set  and  the achievements made under each of the said scheme, year-wise;
- (b) The details of the proposals received from various States along with the proposals approved by the Union Government under the schemes sponsored by the Ministry, state-wise;
- (c)  the  details  of  the  funds  allocated  and  utilized  for  implementation  of  various  schemes  of  the Ministry during each of the last four years and the current year, scheme and State-wise;
- (d) whether the Government has set any time-limit for completing the pending schemes  and if so, the details thereof; and
- (e) whether  the  Government  has  any  mechanism  to  monitor  the  funds  allocated  to  the States/organizations for achieving the said purposes  and if so, the details thereof; and
- (f) the  action  taken  against  the  Non-Government  Organizations  (NGOs)  found  guilty  in  this regard?

## ANSWER

MINISTER OF STATE INDEPENDENT CHARGE FOR MINISTRY OF THE PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS ( RAO INDERJIT SINGH)

Madam,  Ministry  of  Chemicals  &  Fertilizers  comprises  three  Departments  namely Department  of  Fertilizers; Department  of  Chemicals  &  Petrochemicals; and Department of Pharmaceuticals. The reply to parts of the question is as below:

## (a):

Department of Pharmaceuticals

The  following  schemes  under  the  umbrella  scheme  'Scheme  for  Development  of Pharmaceutical Industry' have been launched since the year 2014 by  Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers:

(i) 'Pharmaceutical  Technology  Upgradation  Assistance  Scheme'  (PTUAS):    The objective of the sub-scheme is to facilitate Small and Medium Pharma Enterprises (SMEs) to  upgrade  their  plant  and  machinery  to  World  Health  Organization  (WHO)/Good Manufacturing  Practices  (GMP)  standards  so  as  to  enable  them  to  participate  and compete in global markets.

Under the scheme, assistance in the form of interest subvention against sanctioned loan by any scheduled commercial bank/financial institution, both in Public and Private sector will  be  provided  to  pharma  SMEs  of  proven  track  record.  The  Scheme  is  to  be implemented through a Public Sector Financial Institution (PSFI) which is to be identified by the Government. A total of Rs. 144 Crore has been earmarked for the scheme. The upper limit of interest subvention on loans for technology/infrastructure upgradation shall be restricted to 6% per annum for a period of three years on reducing balance basis. The maximum loan eligible for this purpose will be Rs. 4 Crore, availed by the concerned SME.

(ii) 'Assistance  to  Medical  Device  Industry  for  Common  Facility  Centre':    Under  the scheme, financial assistance would be provided for creation of Common Facilities in any upcoming  Medical  Device  Park  promoted  by  State  Governments/  State  Corporations. Since 2018, a total of Rs. 100 crore has been earmarked for the Scheme. Maximum limit for grant-in-aid under this category would by Rs. 25 crore per Medical Device Park CFC or 70% of the project cost of the CFC, whichever is less.

(iii) 'Assistance to Pharmaceutical Industry for Common Facilities' : Under the scheme, one time grant-in-aid is to be released for creation of identified infrastructure and common facilities  to  Special  Purpose  Vehicles  (SPVs)  set  up  for  the  purpose  since  2015  for development of pharma industries.  A total of Rs. 30 crores has been earmarked for the scheme.  Maximum limit for the grant in aid under this category would be Rs 20.00 crore per cluster or 70% of the cost of project whichever is less.

(iv) 'Assistance to Bulk Drug for Common Facility Centre':  The Department is operating this cheme since 2018 under which financial assistance would be provided for creation of Common  Facilities  in  any  upcoming  Bulk  Drug  Park  promoted  by  State  Governments/ State  Corporations.  A  total  of  Rs  200  crore  have  been  earmarked  for  the  Scheme. Maximum limit for grant-in-aid under this category would by Rs. 100 crore per Bulk drug park CFC or 70% of the project cost of the CFC, whichever is less.

## Department of Fertilizers

The Government of India  has  notified  the  New  Urea  Policy  (NUP)  -  2015  on  25 th May, 2015 for existing 25 gas based urea units with the objective of maximizing indigenous urea production;  promoting  energy  efficiency  in  urea  production;  and  rationalizing  subsidy burden on the Government. NUP-2015 has led to additional production of approximately 20 LMT as compared to 2014-15, from the existing gas based urea plants and the total production of urea during the year 2015-16 was 244.75 LMT, i.e. the highest ever urea production in the country. The indigenous urea production for the years 2016-17, 2017-18 & 2018-19 (upto Dec, 18) was 242.01 LMT, 240.23 LMT & 177.62 LMT respectively.

It  may  be  further  stated  that  the  Department  of  fertilizers  has  also  implemented  Direct Benefit  Transfer  System  (DBT)  across  all  States/UTs  w.e.f.  March,  2018.  Under  the proposed  fertilizer  DBT  system,  100%  subsidy  on  various  fertilizer  grades  shall  be released to the fertilizer companies on the basis of actual sales made by the retailers to the beneficiaries.

Sale of all subsidized fertilizers to farmers/buyers is envisaged to be made through Point of  Sale  (PoS)  devices  installed  at  each  retailer  shop  and  the  beneficiaries  are  to  be identified through Aadhar Card, KCC, Voter Identity Card etc.

Department of Chemicals and Petrochemicals: This Department has not introduced any new schemes since 2014.

## (b)

## Department of Pharmaceuticals

Under the scheme 'Assistance to Medical Device Industry for Common Facility Centre', in Department of Pharmaceuticals, proposals were received from the State Governments of Andhra  Pradesh,  Telangana  and  M/s  HLL  Medipark  Ltd  (HML),  Chennai,  which  is  a Central  Public  Sector  Enterprise,  under  administrative  control  of  Ministry  of  Health  & Family Welfare.  In-principle  approval  has  been  accorded  to  the  proposal  received  from Andhra Pradesh.

Under  the  Scheme  'Assistance  to  Pharmaceutical  Industry  for  Common  Facilities', proposals  were  received  from  Madhya  Pradesh,  Andhra  Pradesh,  Gujarat  and  Tamil Nadu.  Out  of  these,  the  proposal  of  an  Effluent  Treatment  Plant  (ETP)  received  from Chennai Pharma Industrial Infrastructure Upgradation Complex (CPIIUC), Alathur District Kanchipuram, Chennai, Tamilnadu was selected. Recently, one proposal from Government of Himachal Pradesh (Solan) and 2 proposals from Maharashtra (Aurangabad, Pune) have also been received. In-principle approval has been accorded to the proposal received from Pune, Maharashtra.

Under  the  Scheme  'Assistance  to  Bulk  Drug  Industry  for  Common  Facility  Centre' proposals  were  received  from  the  State  Governments  of  Assam,  Andhra  Pradesh  and Himachal  Pradesh.  In  principle  approval  has  been  accorded  to  the  proposals  received from Assam and Andhra Pradesh.

No proposal has been received under 'Pharmaceutical Technology Upgradation Assistance Scheme'.

Department of Chemicals & Petrochemicals implements only Central Sector Schemes and does not implement any Centrally Sponsored Schemes .

## (c)

## Department of Pharmaceuticals

There is no provision for State-wise allocation in any of the schemes of the Department of Pharmaceuticals.

No funds have been allocated for the Schemes of  'Assistance to Bulk Drug for Common Facility Centre', 'Assistance to Medical Device Industry for Common Facility Centre', and Pharmaceutical Technology Upgradation Assistance Scheme' as yet.

Under scheme of Assistance to Pharmaceutical Industry for Common Facilities', about Rs. 4.5 Crore has been released to M/s Chennai Pharma Industrial Infrastructure Upgradation Complex  (CPIIUC),  Alathur  District  Kanchipuram,  Chennai,  Tamilnadu  so  far.  Funds allocated and utilized under this scheme from 2015-16 to January, 2019 are as under:

## (Rs. In Crore)

| Year    |   Funds allocated (Rs. Crore) |   Funds utilized |
|---------|-------------------------------|------------------|
| 2015-16 |                         12.5  |             0    |
| 2016-17 |                          9.99 |             1.49 |
| 2017-18 |                          9.99 |             0.82 |
| 2018-19 |                         10.89 |             2.29 |

## Department of Fertilizers

Budget Allocation and Fertilizer Subsidy released during the years 2014-15 to 2018-19:

(Rs. In Crore)

| Financial Year             | Budget Allocation   | Subsidy Released   |
|----------------------------|---------------------|--------------------|
| 2014-15                    | 75,067.31           | 75,067.31          |
| 2015-16                    | 76,537.56           | 76,537.56          |
| 2016-17                    | 70,100.01           | 70,100.01          |
| 2017-18                    | 69,197.96           | 69,197.96          |
| 2018-19 (as on 31.01.2019) | 73,439.85           | 67,490.12          |

Department of Chemicals & Petrochemicals implements only Central Sector Schemes and does not implement any Centrally Sponsored Schemes. Hence, allocation for the schemes implemented by it is not made State-wise . The details of funds allocated and utilized by Department of Chemicals & Petrochemicals implements for the   Central Sector Schemes implemented by it is as follows:-

## (Rs in Crores)

| Financial Year   |   Budget Allocation |   Amount Released |
|------------------|---------------------|-------------------|
| 2014-15          |               63.01 |             16.57 |
| 2015-16          |               61.32 |             12.86 |
| 2016-17          |               54.01 |             35.1  |
| 2017-18          |              150    |            112.15 |

| 2018-19            | 58.51   | 215.87   |
|--------------------|---------|----------|
| (as on 31.01.2019) |         |          |

## (d)

Department  of  Pharmaceuticals  has  not  set  any  time  limits  for  implementing  its schemes. The schemes implemented by Department of Chemicals & Petrochemicals are approved  for continuing upto a period co-terminous  with the 14 th Finance Commission, i.e. 31.03.2020. However, it is also informed that the 'Assam Gas Cracker Project',  one  of  the  schemes  implemented  by  this  Department  has  already  been commissioned on 2 nd January, 2016.

## (e)

In  the  Department  of Pharmaceuticals, the  Scheme Steering Committees (SSCs) are responsible  for  approving  the  projects  and  monitoring  their  implementation.  In  the Department  of  Chemicals  &  Petrochemicals,  the  progress  of  all  the  schemes  are regularly monitored in the Senior Officer's Meeting held in the Department every week/ fortnight.

## (f)

In the Department of Pharmaceuticals, no NGOs are involved in the existing projects. In the Department of Chemicals & Petrochemicals, action is taken in all such cases where any NGO is found violating any rules.

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