German Technical Cooperation (GTZ), a non-profit developmental enterprise of the German Government, and the Small Industries Development Bank of India (SIDBI) have joined hands and adopted a Pharma Cluster at Hyderabad for cluster development under the GTZ's SME Financing and Development Programme.

The development component involves analysis of the cluster in terms of product quality, manpower competence, processes, market access, environmental concerns, government policies and extension of facilitation support with the active participation of the cluster stakeholders. Involving banks is to develop customized cluster-specific products namely for cGMP compliance and installation of pollution control equipments, linking enterprises with international buyers to access global market through the 'Market Facilitation Programme'.

Speaking to Pharmabiz, N Gurumurthy, senior technical specialist of German Technical Cooperation, said, "We are evaluating proposals to facilitate implementation of action on the key priority areas. As more than 90 per cent of the Pharma units are set to be in the SME sector, GTZ and SIDBI's agreement may be expected to bring significant results. Some of the priority areas we have identified for the sector strengthening SME are: enabling enterprises to get Schedule M and GMP Certification, upgradation of pollution control system in line with the increased rigour of the pollution control laws, enterprise education to make them pollution control as an opportunity and not a compulsion and to conduct practicability study for the common effluent treatment plant".

To support financial linkage of the units with the Banks, GTZ has signed up with 16 chartered accountants at Hyderabad. Under the arrangement, GTZ provides incentives to CAs, in addition to the fee paid by the entrepreneurs, for preparing and submitting bankable proposals.