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Ayurveda drug units ask DoP to extend CLCSS scheme to Ayurveda industry

Ramesh Shankar, MumbaiMonday, November 22, 2010, 08:00 Hrs  [IST]

Even as the Department of Pharmaceuticals (DoP) is contemplating to roll back its much publicised Credit Linked Capital Subsidy Scheme (CLCSS) due to the extremely poor response from the allopathic drug manufacturers, the Ayurveda drug units have asked the DoP to extend the scheme to them to upgrade their units as per the GMP norms.

According to sources, some Ayurveda drug manufacturers from Maharashtra have already approached the DoP in this regard. The Ayurveda drug manufacturers had some time back met senior SIDBI officials in this connection to know their response for their demand. SIDBI is the nodal agency appointed by the DoP for disbursing the loan under the CLCSS scheme.

The DoP had introduced the tweaked CLCSS scheme in the country last year to financially assist the SSI units to upgrade their units as per GMP norms. Though the scheme was originally drafted for allopathic industry, it did not mention about the status of the scheme vis-a-vis ayurvedic industry. There was confusion among the Ayurveda industry whether the scheme can be availed by the Ayurveda industry.

Meanwhile, the ayurveda industry is hopeful that the DoP may extend the scheme to them, especially in the wake of the poor response from the allopathic drug manufacturers. Against the DoP's expectation of around 3000 allopathic SSI pharma units taking advantage of the scheme and avail upto Rs. 400 crore of fund after the relaxation of norms, only 34 units came up for the loan with a total sum of Rs. 2.21 crore during the last about one year.

After tweaking the CLCSS scheme to make it industry-friendly as per the direction of the planning commission, the DoP was engaged in aggressive marketing of the scheme. The top officials of the DoP and the Ministry of Micro, Small &Medium Enterprises (MSME) have been touring different parts of the country to popularize the scheme. The DoP held several workshops in different parts of the country where there are concentration of pharma SSI units to popularize the scheme.

Despite all its efforts, the CLCSS scheme failed to make any inroad as there were still several handicaps in the scheme like the provision of submitting three years balance sheet showing profits.

 
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