The Indian government has made some key amendments to the guidelines of the “Strengthening of Pharmaceuticals Industry” (SPI) scheme. This corrigendum highlights changes to specific clauses related to timelines for technological upgradation and eligibility for cluster formation. This article will provide a brief overview of these changes.
Purpose of the Corrigendum:
The Department of Pharmaceuticals has issued this corrigendum to the SPI scheme based on industry feedback and representations received after the initial guidelines were published on March 11, 2022. The changes aim to make the scheme more effective and accommodating for stakeholders.
Key Modifications:
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Extended Technological Upgradation Timeline: The timeline for technological upgradation under the scheme has been extended from 18 to 30 months from the date of the first loan disbursement for both the general and MSME categories.
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Pharma MSMEs: The deadline for Pharma MSMEs to achieve technological upgradation and be eligible for interest subvention has been changed from 18 to 30 months from the date of first loan disbursal. Failure to do so will convert the loan into a regular loan.
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Clarification on Cluster Formation: The corrigendum clarifies that existing clusters registered under the Companies Act are considered for processing. A separate cluster formation is not needed in such instances.
Revised Clauses:
The document specifies the following amendments:
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Clause 8.2.5 (PT-UAS XVII): The technological upgradation timeline is revised to 30 months from the first loan disbursement.
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Clause 8.2.8: Pharma MSMEs now have 30 months to achieve technological upgrades to maintain interest subvention eligibility, instead of 18 months
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Clause 8.1.2 (API-CF): Existing registered clusters do not need to form new separate entities.
Impact of the Changes:
These changes provide several benefits to eligible entities:
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Increased time flexibility for undertaking technological upgradation.
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More realistic deadlines for MSMEs to meet upgrade requirements.
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Reduced burden and simplified processes for existing pharmaceutical clusters.
No Change in Other Provisions:
All other provisions as contained in the original guidelines published on March 11, 2022 remain unchanged. These include eligibility criteria, activities covered, and funding mechanisms.
Conclusion:
The corrigendum to the SPI scheme underscores the government’s commitment to addressing the needs of the pharmaceutical industry by providing clear pathways for compliance and improved access to the scheme’s benefits. These modifications allow for better planning, smoother implementation and wider participation in the scheme.