DoP announces Revamped Pharmaceuticals Technology Upgradation Assistance Scheme

The approval of the revised Scheme follows a comprehensive review by the Scheme Steering Committee in light of the requirements of the revised Schedule-M of the Drugs and Cosmetics Rule, 1945 as issued by the Department of Health & Family Welfare on 28/12/2023. The revised guideline aims to support the pharmaceutical industry's up-gradation to the Revised Schedule-M & WHO-GMP standards, enhancing the quality and safety of pharmaceutical products manufactured in our country.

Key Features of the Revised Scheme:

• Broadened Eligibility Criteria: Reflecting a more inclusive approach, eligibility for the PTUAS has been expanded beyond Micro, Small and Medium Enterprises to include any pharmaceutical manufacturing unit with a turnover of less than 500 crores that requires technology and quality upgradation. Preference remains for MSMEs, supporting smaller players in achieving high-quality manufacturing standards.
• Flexible Financing Options: The scheme introduces more flexible financing options, emphasizing subsidies on reimbursement basis, over traditional credit-linked approach. This flexibility is designed to diversify the financing options of the participating units, facilitating a more widespread adoption of the scheme.
• Comprehensive Support for Compliance with New Standards: In alignment with revised Schedule-M and WHO-GMP standards, the scheme now supports a broader range of technological upgrades. Eligible activities include improvements such as HVAC systems, water and steam utilities, testing laboratories, stability chambers, clean room facilities, effluent treatment, waste management etc. ensuring comprehensive support for participating units.
• Dynamic Incentive Structure: Pharmaceutical units with the following average turnover for the last three years will be eligible for incentive subject to a maximum of Rs. 1.00 crore per unit:-

• State Government Scheme Integration: The revised scheme allows integration with state government schemes, enabling units to benefit from additional top-up assistance. This collaborative approach aims to maximize support for the pharmaceutical industry in their technology upgradation efforts.
• Enhanced Verification Mechanism: The scheme introduces a robust verification mechanism through a Project Management Agency, ensuring transparency, accountability and the efficient allocation of resources.

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