The ambitious project of setting up common facilities in the Ayush industry clusters aimed at filling the critical gap in quality control is yet to take off with the budgetary allocation for the purpose remained totally unutilized during the last fiscal. The small and medium scale manufacturing units which have been looking for the same to survive in the global competition may have to wait still more.

Though Rs 27 crore was earmarked for the purpose of developing common facilities for drug manufacturing, testing and standardisation, the department of Ayush could not take the scheme ahead and the budget allocation was later revised at Rs 9 crore. However, that amount also remained totally untouched at the end of the financial year of 2007-08. The department sources said that delay in approval of the scheme led to this non-utilisation of the funds and put the scheme on the shelf for one year.

Sources said the scheme has now been approved by the Planning Commission and 20 industry clusters have been identified for the 11th Plan period. At least 10 of them are expected to be operational during the period. Three clusters -Thrissur (Kerala), Nashik and Pune (Maharashtra) had been in principle approved last year and the common facilities may be set up in a couple of years. The clusters have been asked to prepare detailed project reports.

But the delay has taken the toll on this year's allocation which came down to Rs 22 crore. Grant will be given under the scheme by way of grant to the Special Purpose Vehicle (SPV), formed by group of entrepreneurs from Ayush sector. The assistance will be restricted to 60 per cent of the project cost subject to a maximum of Rs 10 crore. The remaining 40 per cent will be raised by the SPV through equity, borrowings from banks/financial institutions and other sources, under this scheme.

The project has been very significant from the point of the Ayush drug industry which at present suffers from small scale of operation and low technology that urgently needs to be upgraded. Majority of the 5000 GMP compliant manufacturing units are of small and medium size. Even though a back ended subsidy to these units for establishing in-house quality control is available under the Centrally Sponsored Scheme for 'Drug Quality Control', these units also require other infrastructure like sophisticated packing machines, medicinal plants storage, testing facilities, quality control and R&D facilities and marketing assistance.

The common facilities set up in these clusters are expected to enable proper quality control, packaging, testing of medicinal plants, brand development and marketing which are necessary if the Ayush drug industry is to capture a fair share of the global herbal market.