The small pharmaceutical units in Gujarat will be the main beneficiaries of a set of incentives announced by the State Government for small-scale sector as part of its industrial policy. The incentives include an interest subsidy for the technology upgradation loans and a cash subsidy for patent registration expenditure for pharma SSIs.

According to sources in the industry department, the recommendation, already incorporated in the industry policy which also known as financial assistance to industrial units, will come into force with immediate effect and will be operational for next five years. As per the recommendation, a financial assistance in the form of interest subsidy at 3 per cent per annum will be provided on term loan received from financial institution /banks towards purchase of capital equipment necessary for technology upgradation. The period of assistance will be for five years subject to a maximum of Rs 3 lakh per year.

The SSI units having permanent registration with DIC or the medium and large industry unit having approval under IDR Act having investment in gross fixed assets not exceeding Rs 10 crore are eligible for the subsidy scheme.

The cash subsidy under the Patent Registration Assistance will be provided for meeting expenses incurred by any organization, institution, individual or industrial units for obtaining patent registration as per national/ international rules and regulations. For this a financial assistance will be provided at the rate of 50 per cent (maximum of Rs 5 lakh) of the necessary expenditure incurred for obtaining the patent.

According to department sources, the fees paid to the approved Patent Assistance Cells such as PAC, GITAN and GITCO will be considered as eligible expenditure for the patent registration assistance scheme.

Considering the long lead time needed in receiving patents by the applicants, a partial disbursements upto 50 per cent also will be made when the patent office issues the final receipt of the application to the applicant who got the approval from the state R&D Committee under the scheme, the official sources added.