Capital subsidy scheme for SSI pharma units to cover 179 items

27 Aug 2009

Small scale units in the pharma sector can now avail of the benefit of the Credit Linked Capital Subsidy Scheme (CLCSS)  for up to 179 items of plants and machinery required for up-gradation to Schedule 'M' standards, an official release said today.

The development commissioner for MSME of the ministry of micro, small and medium enterprises has now issued the second supplement of the revised guidelines on the Credit Linked Capital Subsidy Scheme for technology upgradation of micro and small enterprises, the department of pharmaceuticals said in a website release.

The revised guidelines contain a list of 179 machineries /equipment recommended for drugs and pharmaceuticals products, sub-sector wise (including the existing technologies in the CLCSS required for Schedule 'M' compliance, the release said, adding the guidelines are applicable from 13 July 2009.

More than 3,000 SSI units will benefit from this enhanced scheme and a benefit of more than Rs400 crore could be availed in totality by the entire SSI pharma sector resulting in additional and better product turnover of close to Rs10,000 crore annually, the release noted.

The department of pharmaceuticals is making efforts for inclusion of the medium scale enterprises as well as for undertaking WHO - GMP and other international standards compliance.

The interest subsidy scheme for Schedule `M' compliance was introduced in view of the difficulties faced by the manufacturers, especially by small scale enterprises in the pharmaceutical sector, in respect of the additional financial burden in implementing the mandatory measures under the revised Schedule `M' to the Drugs and Cosmetics Rules, 1945. These rules, relating to good manufacturing practices and requirements of premises/equipments etc for pharmaceuticals products, has now been specifically enhanced based on the scheme formulated by the department of pharmaceuticals with the above CLCSS under the development commissioner (MSME).

A copy of the scheme is given in the website of the Department of Pharmaceutical www.pharma.gov.in and the office of the Development Commissioner www.msme.gov.in