Ingredients News - MP MSME Development Policy and Scheme 2021 offers new lease of life to pharma MSMEs


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MP MSME Development Policy and Scheme 2021 offers new lease of life to pharma MSMEs

Laxmi Yadav, Mumbai August 30 , 2021

The Madhya Pradesh government has come out with MSME Development Policy and Scheme 2021 offering special package to the pharmaceutical sector. It will give a new lease of life to MSME pharma units in the state.

Micro, Small and Medium Enterprises Development Policy and Scheme 2021 released by the state government early this month aims to implement a new classification of micro, small and medium enterprises by the central government on June 1, 2020 in Madhya Pradesh.

As per the notification issued by the state government to implement the policy on August 6, 2021, new investment and business limits have been allowed for all the departments of the state government and their subordinate corporations/institutions/undertakings for all the purposes of the MSMEs of the entire state.

The policy aims to create globally-competitive MSMEs in the state. It will boost industrial growth and attract investment in the state.

As per the policy, the cost of building shall not be more than 200 per cent of the cost of plant and machinery for the purpose of calculating the assistance.

A drug unit will get assistance up to maximum Rs. 25 lakhs or 50 per cent of the cost incurred on establishment of lab equipment and machinery.

50 per cent of the expenditure incurred on creating facilities for obtaining WHO-GMP or US FDA certificate for export readiness, would be reimbursed up to a maximum limit of Rs. 50 lakh.

The drug units making investment up to Rs 10 crore will be eligible to avail the benefits.

The scheme will provide 60 per cent financial assistance subject to a maximum limit of Rs. 500 lakh to the developers for industrial area/flatted industrial complex for pharmaceutical units in the private sector.

Pharma MSMEs investing more than Rs. 10 crore in plant and machinery will get a slack period of two years from the date of commencement of the production. They will get assistance for a period of seven years.

There are a significant number of pharma MSMEs in the state. The fiscal assistance will help them launch drugs at reasonable cost in the domestic market and boost their export.

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