SHED THE CAVALIER APPROACH

The Parliamentary Standing Committee on Union Ministry of Chemicals and Fertilisers has recently recommended to the Department of Pharmaceuticals (DoP) to institute urgent facilitation mechanisms to expedite utilisation of funds under the Revamped Pharmaceutical Technology Upgradation Assistance Scheme (RPTUAS) for technological upgradation of eligible Micro, Small and Medium Pharma Enterprises (MSMEs) in the country. Expressing concern over underutilisation of funds under the Scheme, the Parliamentary panel in its recent report noted that despite approvals nearing the total scheme outlay of Rs. 300.10 crore and some progress in disbursement during financial year 2025-26, a substantial number of approved units remain at various stages of implementation, with a significant portion of funds yet to be released. Given the statistics, the concern of the panel is quite understandable. As of now, under the Scheme, though 301 applications for incentives aggregating to approximately Rs. 300.48 crore have been approved by the DoP, claims of only 64 pharmaceutical units amounting to Rs. 45.80 crore have been duly approved and of this, an amount of only Rs. 41.70 crore has been disbursed for 55 pharmaceutical units during the financial year 2025-26. The remaining number of approved applicants, that is 237 out of 301 applicants, are stated to be at various stages, including claims under process, projects completed but yet to submit certificates and projects under implementation. The DoP said that the reasons for lower disbursement and utilisation is owing to the adverse effect of the upgradation period on operations of pharmaceutical units, phased upgradation by MSME units and prioritization of market commitments and demand obligations by the units. 

Ever since the PTUAS was launched by the DoP in 2022, its implementation has been proving to be a thorn in flesh of the Department as there were few takers for the Scheme due to lack of industry-friendly features. The Scheme was targeted for the MSME units in the pharmaceutical sector to upgrade their manufacturing facilities as per WHO-GMP standards or Schedule M standards. The purpose of the Scheme was to make the MSMEs self-reliant and at par with global standards by supporting technological upgradation. It was a credit linked Scheme and was among the three sub-Schemes of 'Strengthening Pharmaceuticals Industry' (SPI) to strengthen pharma MSMEs in the country. As the Scheme did not elicit much response, the DoP revamped and renamed as RPTUAS with a view to increase the uptake and to help the pharmaceutical industry align its production process with the best global standards. The objective of the RPTUAS was to facilitate the existing pharma units to upgrade to Revised Schedule M and WHO-GMP standards. The intended beneficiaries would include existing pharmaceutical manufacturing units having turnover of less than Rs. 500 crore over the last three years. But, the fund utilisation earmarked for the Scheme has been far and few between which caught the attention of the Parliamentary panel. The panel has recently expressed concern over the lackadaisical attitude of the DoP in utilising the funds earmarked for the Scheme.

The panel has now recommended to the DoP to institute urgent facilitation mechanisms for hand holding and guiding the 237 remaining approved pharmaceutical units in achieving timely and smooth upgradation, so that funds earmarked under the RPTUAS are disbursed in a time bound manner. The DoP should pay heed to the recommendation of the Parliamentary panel as the Revised Schedule M has already come into force and several MSME pharmaceutical units are in dire need of funds to upgrade their units to comply with the Revised Schedule M.