Pharma industry bodies welcome govt's technical upgradation scheme

Drug manufacturers with annual turnovers below Rs 500 crore will get the financial assistance in upgrading their facilities to meet global standards

Pharma industry bodies said the Centre could have considered providing low-interest loans to help small players comply with the good manufacturing practices (GMP) norms. They also said the launch of the revamped Pharmaceuticals Technical Upgradation Assistance (PTUAS) by the Department of Pharmaceuticals is a step in the right direction. 

On Monday, the department had announced the fresh PTUAS scheme to financially assist drug manufacturers with annual turnover below Rs 500 crore to upgrade their facilities to meet global standards.

This follows the introduction of revised Schedule M guidelines for GMP compliance earlier this year.

ALSO READ: Govt revamps pharma scheme, entails financial assistance to drug cos

 

Sudarshan Jain, secretary general, Indian Pharmaceutical Alliance (IPA), said the expanded scope of supported upgrades, aligned with global standards and flexible finance options, will enhance competitiveness. It will help the sector take significant strides in manufacturing quality medicines.

The scheme also includes a revamped incentive structure, where eligible pharma units can receive a maximum of Rs 1 crore, with varying percentages of investment.

Commenting on the new incentive structure, Daara Patel, secretary general, Indian Drug Manufacturers Association (IDMA), said the scheme is a step in the right direction. But he added that the maximum incentive of Rs 1 crore may not be attractive to certain sections of the industry. 

ALSO READ: MSMEs need to be future ready, foster development, says CII president

“The government can also look to provide loans at lower interest rates or in easy instalments to manufacturers. This will encourage them to undertake corrective measures to comply with the revised Schedule M,” he added.    

Highlighting the broadened eligibility criteria of the scheme, Anil Matai, director general, Organisation of Pharmaceutical Producers of India (OPPI) said initially the scheme covered only micro, small and medium enterprises (MSMEs), having annual turnover of up to Rs 250 crore.

The revamped scheme now expands the eligibility criteria to companies having turnover below Rs 500 crore over the last three years.   

“The revamped PTUAS will provide an inclusive outlook by extending the eligibility for credit-linked schemes of the government. It will be facilitating technology and quality upgradation across a broader spectrum of the industry,” Matai said. 

Speaking on this, Mohan Jain, Managing Director, Naprod Life Sciences stated “The revised PTUAS is a critical step forward for the Indian pharmaceutical industry. The revised scheme will facilitate investments in technologies, help improve operational efficiency, and ultimately enhance the overall quality of Indian pharmaceuticals. We eagerly await the finer details of the scheme.”