The government has launched three new schemes to strengthen Micro, Small, Medium Enterprises (MSMEs) in the pharmaceutical sector. Union Minister, Mr. Mansukh Mandviya stated that with these schemes, small companies will be empowered to upgrade their manufacturing facilities to global standards.

He further observed that the schemes foresee up-gradation of technology, establishing common research centers, and effluent treatment plants in clusters for pharma MSMEs. The schemes were rolled out by the chemicals and fertilizers ministry under the sign of ‘Strengthening Pharmaceuticals Industry.’ 

Mr.  Mandviya who also heads the chemical and fertilizers ministry stated, “I believe the pharma MSME industry will greatly benefit from the schemes. The new schemes have many benefits that will go a long way in making the Indian pharmaceutical industry Atmanirbhar, more resilient, and future ready.” 

The provisions of the scheme include provisions for a capital subsidy of 10% on loans for an upper limit of INR 10 crores with a minimum repayment period of three years or interest subvention of up to 5% on a reducing basis. The interest subvention is slated to be 6% in the case of units owned by SC/ST.  The grant-in-aid is provisioned to be INR 20 crore per cluster or 90% of the project cost in the Himalayan and North-East region. 

In the words of the health and chemical & fertilizers minister, “the schemes will increase investment, encourage research and innovation and enable the industry to develop futuristic products and ideas.” 

[Source: ET HealthWorld, 23 July 2022 https://health.economictimes.indiatimes.com/news/policy/govt-launches-three-schemes-for-pharma-sector-msmes/93064157]