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Gireesh Babu, New Delhi
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Gireesh Babu, New Delhi
August 10 , 2026
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Observing underutilisation of funds under the Revamped Pharmaceutical Technology Upgradation Assistance Scheme (RPTUAS) for technological upgradation of eligible micro, small and medium pharma enterprises (MSMEs) so far, the Parliamentary Panel on Chemicals and Fertilisers has recommended to the Department of Pharmaceuticals (DoP) to institute urgent facilitation mechanisms and hand holding to the units.
The Parliamentary Standing Committee on Chemicals and Fertilisers in its 34th report on the action taken by the government on its previous recommendations on the DoP's Demands for Grants 2026-27, noted that despite approvals nearing the total scheme outlay of Rs. 300.10 crore and some progress in disbursement during FY 2025–26, a substantial number of approved units remain at various stages of implementation, with a significant portion of funds yet to be released.
It also took the explanation of the DoP on the reasons impacting timely fund disbursement and utilisation under the Scheme into account while issuing the latest recommendations.
The DoP said that the reasons for lower disbursement and utilisation is owing to the adverse effect of the upgradation period on operations of pharmaceutical units, phased upgradation by MSME units and prioritization of market commitments and demand obligations by the units.
"The Committee, therefore, recommend that the Department should institute urgent facilitation mechanisms for hand holding and guiding the 237 remaining approved applicants/pharmaceutical units in achieving timely and smooth upgradation, so that funds earmarked under the RPTUAS are disbursed in a time bound manner. The Committee may be apprised of the action taken in the matter," said the Panel headed by Member of Parliament Kirti Azad Jha.
The Panel has earlier recommended that urgent measures may be taken by the Department to ensure that funds under the Scheme be disbursed in a time-bound manner in the final financial year of 2025-26.
The Department, in its Action Taken Reply, has submitted that under the Scheme, 301 applications or pharmaceutical units for incentives aggregating to approximately Rs. 300.48 crore have been approved, which is nearly equivalent to the total outlay of the sub-scheme, as on March 31, 2026.
Further, out of the 301 approved applicants, claims of 64 pharmaceutical units amounting to Rs. 45.80 crore have been duly approved and of this, an amount of Rs. 41.70 crore has already been disbursed for 55 pharmaceutical units during FY 2025–26. The remaining number of approved applicants or pharmaceutical units, that is 237 out of 301 approved applicants or pharmaceutical units are stated to be at various stages, including claims under process, projects completed but yet to submit certificates and projects under implementation.
The DoP, in its action taken report to the Panel on its previous recommendations, said that the implementing agency of the Department is working in close coordination with the pharmaceutical units that have applied under the scheme to monitor the progress of their projects.
However, it has been observed that the operations of pharmaceutical units are adversely affected during the upgradation period, it said.
Accordingly, micro and small pharmaceutical units tend to undertake upgradation activities in a phased manner over a period of time rather than executing them at once, which results in delays in project completion. In contrast, medium-sized units may have backup production facilities to manage such transitions, it informed the Panel.
Further, pharmaceutical units generally prioritize meeting their existing market commitments and demand obligations, which also contributes to the slower pace of implementation, it added.
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