Lok Sabha Question No. 2373 (UNSTARRED), answered on 2021-03-09
Subject: Manufacturing of Medical Devices
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Pratima Bhoumik

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

LOK SABHA UNSTARRED QUESTION No. 2373 TO BE ANSWERED ON THE 09 th  MARCH, 2021

## Manufacturing of Medical Devices

## 2373. MS. PRATIMA BHOUMIK:

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

- (a) whether the Government has prepared any scheme to promote domestic manufacturing of medical devices;
- (b) if so, the details thereof alongwith the amount allocated under the scheme during the last three years and the current year;
- (c) whether the Government has given any special attention to the manufacture of Medical devices in the Northeast region and if so, the details thereof; and
- (d) whether the Government has received any proposals in this regard, if so, the details thereof State and UT-wise alongwith the status of the proposals?

## ANSWER

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

(a) & (b): Yes Sir, the Department has approved the project of Andhra Pradesh MedTech Zone Ltd (AMTZ) for providing financial assistance of Rs. 25 crore for creation of Common Facility for superconducting magnetic coils testing & research facility under the scheme 'Assistance to Medical Device Industry for Common Facility Centre'. A budget of Rs. 0.02 crore, 0.02 crore and  7.50  crore  has  been  allocated  under  financial  years  2018-19,  2019-20  and  2020-21 respectively. The Department has released first instalment of Rs. 7.49 crore for the project on 11.09.2020. Further, the Department has rolled out following two schemes for medical devices sector:

- (i) A  scheme  called  'Production  Linked  Incentive  Scheme  for  Promoting  Domestic Manufacturing of Medical Devices' has been approved by the Government of India on 20th March, 2020. The revised guidelines for implementation of the scheme has been issued on 29.10.2020. The Scheme is applicable only to the Greenfield projects and  intends  to  boost  domestic  manufacturing  and  attract  large  investments  in  the Medical  Devices  Sector.  Under  the  Scheme,  financial  incentive  will  be  given  to selected  companies  at  the  rate  of  5%  of  incremental  sales  of  medical  devices manufactured in India and covered under the Target segments of the scheme, for a period of five (5) years. The tenure of the scheme is from FY 2020-21 to FY 2027-28. The total  financial  outlay  of  the  Scheme  is  Rs.  3,420  crore.  The  scheme  is  under implementation. A budget of Rs. 2.36 crore has been allocated for the Financial Year 2021-22.
- (ii) Recognizing the need for higher levels of investments for the creation of testing and laboratory facilities, a scheme called 'Promotion of Medical Device Parks' has been approved by the Government of India on 20th March 2020. The parks will provide common  testing  and  laboratory  facilities  / centre at  one  place  reducing  the manufacturing  cost  significantly  and  will  help  in  creating  a  robust  ecosystem  for medical device manufacturing in the country. The total financial outlay of the scheme is Rs. 400 crore. The tenure of the scheme is from FY 2020-2021 to FY 2024-2025. Financial assistance to a selected Medical Device Park would be 70% of the project cost of common infrastructure facilities. In case of North Eastern States and Hilly States (Himachal Pradesh, Uttarakhand, Union Territory of Jammu & Kashmir and Union Territory of Ladakh) financial assistance would be 90% of the project cost. Maximum assistance under the scheme for one Medical Device Park would be limited to Rs. 100 crore. The scheme is under implementation. A budget of Rs. 60 crore has been allocated for the Financial Year 2021-22.

(c)  &  (d):  Special  attention  has  been  given  to  the  manufacture  of  Medical  devices  in  the Northeast  region  under  the  scheme  'Promotion  of  Medical  Devices  Parks'.  Financial assistance to a selected Medical Device Park would be 70% of the project cost of common infrastructure facilities. However, in case of North Eastern States and Hilly States (Himachal Pradesh, Uttarakhand, Union Territory of Jammu & Kashmir and Union Territory of Ladakh) financial assistance would be 90% of the project cost. The Department has not received any proposal from any North-Eastern State.

*****