Govt Updates PTUAS Scheme to Meet Industry Demands

With the revised scheme, units eligible for reimbursement can receive subsidies ranging from 10 to 20%, depending on their size and turnover.

The Union Government has approved amendments to the Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) to bolster support for enhancing quality standards within the pharmaceutical sector.

PTUAS is primarily designed for medium to small drug manufacturing units, has undergone essential modifications to provide comprehensive assistance, covering expenses such as certification.

Under the revised scheme, a structured subsidy system has been implemented, allowing eligible units to receive reimbursement subsidies ranging from 10 to 20 % based on their size and turnover.

Sharing insights, Arunish Chawla, secretary, Department of Pharmaceuticals (DoP), said, "Recognizing the need for enhanced support in upgrading quality standards, the Union Minister for Chemicals and Fertilisers has sanctioned reforms in the PTUAS guidelines,"

Further, Chawla highlighted the significance of this update, emphasizing its alignment with industry demands.

He also noted that approximately half of India's manufacturing units have attained the Good Manufacturing Practices standards set by the World Health Organization (WHO).

Enhancing Support for Pharma MSMEs

PTUAS, a credit-linked scheme, now offers financial aid of up to one crore to pharmaceutical MSMEs seeking to upgrade their manufacturing facilities to meet WHO-GMP or Schedule M standards.

This initiative forms part of the broader 'Strengthening Pharmaceuticals Industry' (SPI) framework, which includes two additional sub-schemes: Assistance to Pharmaceutical Industry for Common Facilities (APICF) in clusters and Pharmaceutical & Medical Devices Promotion and Development Scheme.

Reportedly, the previous structure of PTUAS posed challenges, with a minimal subsidy of 10% and a short repayment period of three years, dissuading potential beneficiaries.

However, the recent revisions aim to address these issues, fostering greater participation and efficacy within the scheme.

Focus on Strategic Depth & Innovation

The government has initiated Product Linked Incentive (PLI) schemes and other initiatives to fortify the sector, including the inauguration of 50 Greenfield projects nationwide dedicated to manufacturing bulk drugs and medical devices.

"The launch of these Greenfield projects marks a significant stride towards fostering innovation and bolstering domestic production capabilities," remarked Chawla.

The DoP secretary also underscored the importance of deepening the strategic depth of the pharmaceutical value chain, particularly in light of vulnerabilities exposed during the COVID-19 pandemic.

"Furthermore, initiatives such as the PLI scheme aimed at high-value areas demonstrate the government's commitment to promoting research and innovation within the pharmaceutical domain."

Industry Growth Trajectory

Despite challenges, the pharmaceutical industry continues to exhibit robust growth, constituting a substantial portion of the country's manufacturing output.

Moreover, the industry remains a key contributor to economic growth, with a gross value-added representation of 7.5% within the manufacturing sector.

Chawla projected further expansion, suggesting that by 2030, the pharmaceutical sector could account for up to 10% of the total manufacturing output.

The government's proactive response to industry demands reflects a concerted effort to strengthen the pharmaceutical sector, enhance quality standards, and promote innovation.

With ongoing initiatives and policy reforms, the industry is poised for sustained growth and global competitiveness in the years ahead.