The National Productivity Council, entrusted with the task of preparing the modalities of implementing the Pharmaceutical Technology Upgradation Fund (PTUF), will take a tour to some of the key small scale clusters like Indore, Thane, Kolkota and Ankleshwar to get first hand report of the functioning of the sector.

The Council was given the job in January this year with a time upto June 15 for preparing a report of the PTUF implementation. The scheme is meant to help existing small and medium scale pharma companies to upgrade themselves to the internationally acceptable standards of manufacturing through financial assistance. This was decided at a meeting recently chaired by joint secretary in chemicals department G S Sandhu, and attended by the representatives of SIDBI, NIPER, DCGI office, National Productivity Council, Development Commissioner for SSI and trade bodies like SPIC, CIPI and CII, it is learnt.

Though the council wanted to give a presentation at the meeting, it could not do so as it did make little headway in this regard after taking up the task. The government however presented the salient features of the scheme, prepared in consultation with the NIPER while trade bodies took the up the issues of difficulties being faced in disbursement by SIDBI for such scheme. SIDBI on its part asked for details of such schemes being stuck with difficulties. The trade bodies were also not so happy with the proposals to induct a former assistant drug controller as consultant for the study and the paper prepared by the NIPER. The next meeting would be held in the second half of June, it was decided.

The SME Pharma Industries Confederation (SPIC) called for extending the scheme to all existing manufacturers in both formulation and bulk drugs. ``At least 50 per cent of the funds should be reserved for disbursement to those independent SME pharma units who have held continuously a valid drug manufacturing license for a minimum period of 25 years. About 30 per cent of the funds be reserved for disbursement to those independent SME pharma units who have held continuously a valid license for a minimum period of 10 years and 20 per cent of the funds for those in existence for a minimum period of five years,'' SPIC urged in its presentation.

On the methodology of disbursement, the association wanted to restrict the scheme only to the SME pharma units. It has put forward its suggestions on the loan period and interest rates, in relation to the period of existence of the units. ``In case of pharma units over 25 years old, interest subsidy contribution in form of margin money would be with a limit of Rs one crore per unit for plant and machinery and Rs one crore for infrastructure changes required,'' SPIC told the meeting.