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Nandita Vijay, Bengaluru October 23 , 2023
The Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) has not generated much interest till date. Only a handful of Indian pharma companies have applied for the benefit. There are several shortcomings in this scheme. Normally any capital subsidy scheme benefit is minimum 20% subsidy, but in PTUAS it is only 10%.

Harish K Jain, president, Federation of Organisations of Pharmaceutical Entrepreneurs (FOPE), pointed out that scheme should be extended to upgrade to Revised Schedule M as well. 

As per our estimates, the micro small and medium enterprises (MSMEs) will require about Rs. 5 crore investment to upgrade to Revised Schedule M plant. Here the capital subsidy scheme with 20% subsidy with a ceiling of Rs. 1 crore will be ideal and will find many takers, he added.

Also the repayment period is only 3 years. Any capital investment required minimum 7 years repayment. If these aspects of the scheme are taken care of, then there will be many takers for the scheme. In fact, as it stands, Indian pharma MSMEs will l require bigger scheme, Jain told Pharmabiz.

PTUAS has only Rs. 300.10 crore outlay and it was launched by the government on July 21, 2022. This is among three sub-schemes of 'Strengthening Pharmaceuticals Industry' (SPI) to boost the growth of the pharma MSMEs.

The key objective of PTUAS is to facilitate MSMEs of proven track record to upgrade their technology to meet WHO-GMP or Schedule M standards. The scheme has provisions for a capital subsidy of 10 per cent on loans up to a maximum limit of Rs. 10 crore with a minimum repayment period of three years or interest subvention of up to 5 per cent (6 per cent in case of units owned by SC/ST) on reducing balance basis. Minimum repayment period of the loan sanctioned for availing of the benefit under the scheme is 3 years.

The other two sub-schemes are Assistance to Pharmaceutical Industry for Common Facilities (APICF) in clusters and Pharmaceutical & Medical Devices Promotion and Development Scheme (PMPDS). SIDBI is the project management consultant for implementing the scheme.

The intended beneficiaries are the existing MSMEs in pharmaceutical sector who have a manufacturing set up with basic license. The key focus of the scheme is that amount should be utilized for project undertaken for only upgradation of technology as per WHO -GMP or Schedule M standards.

The government has categorically stated that setting up of new unit or regular expansion for increasing production are not eligible. Besides eligible equipment listed, MIS (management information system) is required for technological up gradation only new machinery would be also be considered. Also under the eligible activities, the GST, import duty and custom charges to be included in the cost.

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