Pharma tech upgrade scheme to get financial partner soon

SMEs will be get interest subvention upto 6% under PTUAS

The Department of Pharmaceuticals will soon initiate the process to select a financial institution for implementing the Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) for small and medium enterprises.

Expression of interest to select the public sector financial institution will be called shortly, Joint Secretary Navadeep Rinwa said at a Pharmaceuticals Export Promotion Council of India (Pharmexcil) event here on Friday evening.

PTUAS seeks to facilitate the enterprises upgrade plant and machinery to World Health Organisation-Good Manufacturing Practices (WHO-GMP) standards, thus enabling them to compete in global markets. At the heart is an interest subvention that will be available to small and medium scale pharma units having GMP compliant manufacturing facilities both for bulk drugs and pharmaceutical formulations.

The scheme has got a budgetary allocation of ₹144 crore for two years (2018-2020), he said presenting the export performance awards instituted by Pharmexcil. Around 250 pharma SMEs are likely to benefit from the scheme.

The Department, a part of Union Ministry of Chemicals and Fertilisers, has proposed interest subvention up to 6% per annum for a period of three years. The maximum loan eligible to the SMEs for upgradation will be ₹4 crore.

The senior official spoke about PTUAS while highlighting how the government is keen on pharma facilities’ raising their level of infrastructure and technology. It is “high time our manufacturing facilities raise their infrastructure, technology and we attain WHO-GMP standards and in future [also] join PIC/S (Pharmaceutical Inspection Convention and Pharmaceutical Inspection Co-operation Scheme),” he said.

Stating that the government is keen on sharpening focus on the sector, Mr. Rinwa urged stakeholders to do “much more as far as R&D on innovator drug is concerned... [and] not rest on laurels for being the leader in the generic segment.” There is also a need to strengthen the regulatory system consisting of CDSO and State Drug Controller offices, he added.

Pharmexcil Director General Ravi Uday Bhaskar said pharma exports in 2017-18 grew by 2.92% to $17.26 billion despite a negative growth in the US market. The focus was on looking at different markets, a strategy that led to consolidation of the position in CIS countries, reviving sales to Africa and record a 37% growth to China.

Pharmexcil’s incoming Chairman Dinesh Dua said pharma exports continued to grow, clocking a 16% growth in the April-July period this fiscal.

The industry, he added, was in need of finance at affordable cost.

Highlighting the growth opportunity, outgoing chairman of the Council Madan Mohan Reddy said Indian pharma industry needs to plan for a sustainable, long term future.

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Printable version | Apr 10, 2020 9:25:38 AM |

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