In what could be a major help to the small-scale drug manufacturing sector in fulfilling their GMP dreams, the union finance minister has announced a substantial increase in the amount of loans that can be sanctioned to SSI sector under Capital Subsidy Scheme. The ceiling for loans under the scheme has been raised from Rs 40 lakh to Rs 1 crore. The rate of subsidy will also be raised from 12 per cent to 15 per cent. The minister also assured that the scope of the scheme would be enlarged by adding more sub-sectors and technologies eligible for assistance.

The Finance Minister has in his budget speech mentioned, "SSI units will be encouraged to obtain credit rating. With these measures, I expect that many more SSI units will benefit from the restructured scheme. A provision of Rs 135.24 crore has been made for "Promotion of SSI Schemes," and within that amount funds will be found for the Capital Subsidy Scheme."

The Ministry of Small Scale Industries can now be sure that the Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation of small and medium industries is going to have more enquiries in the coming months. The Small Industries Development Bank of India (SIDBI) and National Bank for Agriculture and Rural Development (NABARD) are the nodal agencies for the scheme.

It may be noted that the SSI Ministry had recently announced a list of 30 technologies for which drugs and pharmaceutical companies can avail the loan facilities through the scheme. These technologies (see http://www.pharmabiz.com/article/detnews.asp?article id=21236§ionid=5&r=1 for detailed list) coming under different heads like 'Tablets and Capsules Section', 'Liquid Oral Section', 'Injectable Section', 'Dry Syrup Section', 'Quality Control Department', 'Environment Control Devices' etc that has been approved under the revised guidelines of CLCSS for technology upgradation.

The Finance Minister has termed the SSI sector as "Engine of Growth" and has stressed the need for giving them space to grow into medium enterprises. He also felt that technology upgradation of SSI units (GMP for SSI drug sector) is the most urgent requirement to do business in a competitive environment.