Why is it in the News?

India's Department of Pharmaceuticals recently unveiled the Revamped Pharmaceuticals Technology Upgradation Assistance Scheme (RPTUAS) to help advance the technological capabilities of India's pharmaceutical industry and align it with global standards.

What is the Pharmaceuticals Technology Upgradation Assistance Scheme?

• In an effort to support pharma companies aligned with global quality standards, the Department of Pharmaceuticals (DoP) has announced a revamped Pharmaceuticals Technology Upgradation Assistance (RPTUAS) Scheme.
• It has been incorporated as a sub-scheme under the Scheme - Strengthening of Pharmaceutical Industry (SPI), which was launched in July 2022.

Objective:

• To facilitate Micro, Small and Medium Pharma Enterprises (MSME) of proven track record to upgrade their technology to meet WHO-GMP or Schedule M standards.

Intended Beneficiaries:

• Micro, Small and Medium Enterprises of the pharma sector.

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 approaches.
• Comprehensive Support for Compliance with New Standards: In alignment with revised Schedule-M and WHO- Good Manufacturing Practice (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 etc.
• 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.
  • The new benefit limit is based on turnover of the company. Units with less than Rs 5 crore turnover will get an incentive of 20 percent of investment under eligible activities.
• The units with turnover ranging from Rs 50 crore to less than Rs 250 crore will get an incentive of 15 percent of investment, while for those with turnover ranging from Rs 250 crore to less than Rs 500 crore, it will be 10 percent of investment under eligible expenses.