The Pharmaceuticals Department has reopened the application period for the API CF sub-scheme, aimed at aiding pharmaceutical companies in establishing shared facilities, as part of the Strengthening of Pharmaceuticals Industry (SPI) initiative. This window will remain open for over a month for eligible firms.
From December 11, 2024, to January 13, 2025, companies can submit their applications for the API-CF sub-scheme through the Small Industries Development Bank of India (SIDBI) online platform, which serves as the project’s management agency.
This decision coincides with criticisms from certain industry segments, which claim that central government schemes designed to modernize technology and develop shared amenities are not adequately accessible for smaller enterprises. Given the mandatory enhancement of manufacturing standards set to apply to companies with turnovers under Rs. 250 crore starting next year, utilizing such schemes becomes critical.
The DoP’s SPI initiative, with a budget of Rs. 500 crore from FY 2021-2022 until FY 2025-26, encompasses three sub-programs: API-CF, RPTUAS, and the Pharmaceutical and Medical Device Promotion and Development Scheme (PMPDS). The PMPDS focuses on raising awareness, conducting research, and organizing events.
Notably, the department has adjusted and overhauled other SPI sub-programs, such as the Pharmaceuticals Technology Upgradation Assistance Scheme (PTUAS), multiple times to align with industry needs. Changes were made to PTUAS in January 2023, March 2024, and again in September 2024, according to DoP.
The API-CF sub-program is designed to bolster infrastructure support for pharmaceutical MSME clusters. In March of last year, it was announced that eight MSME projects had been approved or shortlisted, including those in Tamil Nadu, Maharashtra, and Himachal Pradesh, with a combined investment of Rs. 54.7 crore.
SIDBI indicates that the sub-scheme’s objective is to enhance the enduring growth potential of existing pharmaceutical clusters by developing collective amenities as shared assets.
Pharmaceutical manufacturing units forming a Special Purpose Vehicle (SPV) to manage a joint facility project, along with state-supported pharma clusters, are intended recipients of the benefits. An SPV must include a minimum of five pharma companies to qualify for the sub-program.
The maximum incentive is set at 70% of the sanctioned project cost or Rs. 20 crore, whichever amount is lower, as approved by the Scheme Steering Committee (SSC). For Himalayan and Northeastern regions, the grant can reach Rs. 20 crore per cluster or 90% of the CIF project costs, whichever is smaller.