Lok Sabha Question No. 2953 (UNSTARRED), answered on 2023-03-17
Subject: Scheme to Support Pharma Clusters
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Ramesh Chandra Majhi

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

LOK SABHA UNSTARRED QUESTION No. 2953 TO BE ANSWERED ON THE 17 TH  MARCH, 2022

## Scheme to support Pharma Clusters

## 2953. SHRI RAMESH CHANDRA MAJHI:

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

- (a)  whether  the  Government  has  any  scheme  to  support  the  productivity,  quality  and sustainability of the existing pharma clusters across the country;
- (b) if so, the details thereof along with the salient features of such scheme;
- (c)  whether  such  scheme  will  address  the  rising  demand  of  pharma  clusters  to  sustain  its productivity and quality;
- (d) if so, the details thereof; and
- (e) the other steps taken/proposed to be taken by the Government to make India a global leader in pharmaceutical sector?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI BHAGWANTH KHUBA)

(a) to (d):  The Department is implementing the scheme of Strengthening of Pharmaceutical Industry (SPI), with a financial outlay of Rs. 500 crores and the tenure from FY 2021-2022 to FY  2025-26  three  sub-schemes  (viz, Assistance  to  Pharmaceutical  Industry  for  Common Facilities (API-CF), Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) and Pharmaceutical and Medical Devices Promotion and Development Scheme (PMPDS) )  to provide  infrastructure  support  for  pharma  MSMEs  in  clusters  and  to  address  the  issues  of technology upgradation of individual pharma MSMEs  and  to  facilitate growth and development of Pharmaceutical and Medical Devices Sectors through study/survey reports, awareness programs, creation of database, and promotion of industry.

- i. The objective of the API-CF is to strengthen the existing pharmaceutical clusters' capacity  for  their  sustained  growth  by  creating  tangible  assets  as  'Common Facilities. Grant-in-Aid under the scheme will be 70% of the approved project cost or Rs 20 cr., whichever is less, as per approval of SSC. In the case of Himalayan States and States in the North East Region, the grant-in-aid would be Rs. 20 Crore per Cluster or 90% of the project cost of the Common Infrastructure Facilities (CIF), whichever is less.  Under erstwhile API-CF, so far, 3 projects have been sanctioned, each one at Tamil Nadu, Maharashtra and Himachal Pradesh. Further, under the API-CF sub-component of SPI scheme, three projects have been given 'in-Principle' approval, two projects have been given final approval and two projects are under short-listed stage.
- ii. The  objective  of  the  PTUAS  is  to  facilitate  Micro,  Small  and  Medium  Pharma Enterprises (MSME) of proven track record to upgrade their technology to meet

WHO-GMP or Schedule M. Support under the scheme is up to maximum of 5% per annum (6% in case of units owned and managed by SC/STs) of interest subvention for loan component eligible under the scheme taken to the upper limit of Rs. 10 cr. for a maximum period of 3 years on reducing balance for sanctioned loans by any scheduled  commercial  banks/financial  institutions,  both  in  the  Public  and  the Private Sector or Credit linked Capital subsidy of 10% on loan component eligible under  the  scheme.  Maximum  limit  of  loan  will  be  Rs.  10.00  crore.  Under  this Scheme, applications are invited from eligible applicants. Four applications have been received which are under examination.

- iii. The  PMPDS  has  two  main  objectives.  The  first objective is to  promote Pharmaceutical  and  Medical  Device  Industry  by  bringing  industry  leaders, academia and policy makers together to share their knowledge and experience for overall development of the sectors. The other objective is to facilitate growth and development  of  the  sectors  through  conducting  studies,  organizing  awareness programs, creation of databases and promotion of industry. Financial support to organize seminars, conferences, workshop & exhibitions in the form of Grant-inAid are provided.  Under this Scheme, study/survey reports, awareness programs, creation of database, and promotion of industry are supported by the Department under this scheme.

(e):  Several  steps  have  been taken by  the  Government  of  India  to  encourage  domestic manufacturing of Pharmaceutical drugs including bulk drugs to reduce import dependence and to establish a dominant position in the global market are as follows;

- i. Under  the Production  Linked  Incentive  (PLI)  Scheme  for  promotion  of  domestic manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India, with a financial outlay of Rs. 6,940 crores and the tenure from FY 2020-2021 to FY 2029-30, the financial incentive is  planned to be provided for 41 identified products. A total of 51 applications have been  selected  under  the  scheme.  Out  of  these,  22  projects  have  already  been commissioned with the installed capacity of 34,255 MT.
- ii. Production Linked Incentive Scheme for Pharmaceuticals , with a financial outlay Rs. 15,000 crores and the tenure from FY 2020- 2021 to FY 2028-29, provides for financial incentive to 55 selected applicants for manufacturing of identified products under three categories for a period of six years. For these 55 selected applicants approximate 5500 eligible products have been approved under the scheme. FY 2022-23 is the first year of performance.  As  on  date, under  the  PLI  scheme  for  Pharmaceuticals , an  incentive amount of Rs.363 Cr has been released under the scheme.
- iii. Scheme for Promotion of Bulk Drug Parks , with a financial outlay of Rs. 3,000 crores and the tenure from FY 2020-2021 to FY 2024-25, provides for financial assistance to three States for establishing Bulk Drug Parks. After evaluation of the proposals received from 13 States, the proposals of the states of Gujarat, Himachal Pradesh and Andhra Pradesh have been finally approved for providing grants-in-aid for creation of common infrastructure  facilities  in  the  proposed  Bulk  Drug  Parks.  Under  the  scheme,  first instalments have been released to the States.
- iv. Under the major non-schematic intervention, in order to attract investments in Pharma sector, the Government has allowed 100% FDI in pharma sector for greenfield projects under automatic route.  For the brownfield projects, upto 74%, FDI investments are allowed under automatic route and beyond 74% to 100%, FDI investments are allowed under government approval route.

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