In a belated move to address long-standing demand by the small scale sector, the centre has revised the guidelines on the Credit Linked Capital Subsidy Scheme (CLCSS) to enable small scale units to avail the benefit of the scheme for upto 189 items of plants and machinery required for upgradation to Schedule M standards.

The development commissioner for MSME of the ministry of micro, small and medium enterprises has now issued the second supplement of the revised guidelines on the CLCSS scheme for technology upgradation of micro and small enterprises, according to an official release. The revised guidelines contain a list of 179 machineries/equipment recommended for drugs and pharmaceuticals products, sub-sector wise (including the existing technologies in the CLCSS required for Schedule M compliance, the release said, adding the guidelines are applicable from July 13, 2009.

More than 3,000 SSI units will benefit from this enhanced scheme and a benefit of more than Rs 400 crore could be availed in totality by the entire SSI pharma sector resulting in additional and better product turnover of close to Rs 10,000 crore annually, the release noted.

The department of pharmaceuticals is making efforts for inclusion of the medium scale enterprises as well as for undertaking WHO-GMP and other international standards compliance, it said.

"The Interest Subsidy Scheme for Schedule M compliance framed by the Department of Pharmaceuticals keeping in view the difficulties experienced by the manufacturers especially belonging to the small scale enterprises in the pharmaceutical sector in respect of the additional financial burden in implementing the mandatory measures under the revised Schedule M to the Drugs and Cosmetics Rules, 1945 relating to Good Manufacturing Practices and requirements of premises/equipments etc. for pharmaceuticals products has now been specifically enhanced based on the scheme formulated by the Department of Pharmaceuticals of the Government of India with the above Credit Linked Capital Subsidy Scheme (CLCSS) under the Development Commissioner (MSME). A copy of the scheme is given in the website of the Department of Pharmaceutical www.pharma.gov.in and the office of the development commissioner www.msme.gov.in," the release said.

SME Pharma Industries Confederation (SPIC), which has been pressing for some measures like this to help the SME sector, welcomed the revision of the scheme. "Though it is late, the Scheme will partially address the financial investment burden imposed on SME sector for compliance to upgrade to Schedule M. It is a good and a laudable beginning by the department of pharmaceuticals," SPIC vice chairman Lalit Kumar Jain said.