The Commerce Ministry has assured grant of more subsidies to the small and medium pharmaceutical units through the cluster development route if 10 or more existing units could form clusters in any regions in the country.

The ministry will take steps to ensure funds to the already Schedule M-compliant units for further upgradations. Ministry will also channelise funds for schemes such as joint laboratory, common ETP, warehousing, gensets etc. The ministry has conveyed it to the leaders of the industry and asked them to mobilise the units on these lines to gain maximum support from the government through the existing schemes.

Under the 11th Plan, the government has given special consideration to the micro, small, medium enterprises by extending financial assistance to the existing clusters to make the units globally competitive. Besides higher financial assistance, the government is also placing consultants for giving guidance to the clusters having minimum 10 units. The pharma companies have also been asked to make use of this by forming clusters, sources said.

The "Small Industry Cluster Development Programme (SICDP)" has been re-named as Micro & Small Enterprises Cluster Development Programme (MSE-CDP). The Scheme of Integrated Infrastructural Development (lID) has been subsumed under MSE-CDP, with all its existing features and funding pattern upto Rs 2 crore i.e. 40 per cent of the project cost not exceeding Rs 5 crore per centre. The assistance is also be available for setting up of new clusters/industrial estates.

The Commerce Ministry has also recast the Industrial Infrastructure Upgradation Scheme (IIUS) recently with a total possible allocation upto Rs 70.54 crore, including the central grant of Rs 58.20 crore for a cluster. Under the project, 'in principle' approval is granted for the upgradation of waste water system, common effluent treatment plant and strengthening and widening of road. A pharmaceuticals & allied industries cluster, has thus been approved at Baddi-Barotiwala in district Solan, Himachal Pradesh.

A Central grant upto 75 per cent subject to maximum Rs 60 crore is provided under this scheme, whereas remaining 25 per cent is financed by other stakeholders of the respective cluster with a minimum industry contribution of 15 per cent of total project cost. So far Rs 929 crore has been released to 32 projects in the country. However, only one pharma cluster could make use of it so far.