The Department of Pharmaceuticals (DoP) wants to push a Rs.300 crore cluster development programme for small and medium level pharma companies to enhance quality, productivity and innovative capabilities, during the next five year plan.

Though many of the elements of this scheme have been attempted separately during the last few years, nothing has worked out concretely so far. Hence the DoP wants to launch it as a central scheme titled Cluster Development Programme-Pharma Sector (CDS-PS) during the next Plan period, sources said.

The total size of the scheme is proposed as Rs.300 crore and would be implemented on a public private partnership format. Support from the DoP would be by the way of grant for creation of identified infrastructure and central facilities through special purpose vehicles formed by group of entrepreneurs from the clusters, according to a concept note by the DoP to be submitted to the Planning Commission.

The Centre’s grant will be restricted to 70 per cent of the total project cost subject to maximum of Rs.10.50 crore per cluster project. The grant will be increased to 90 per cent in the case of special categories like North East, industrial areas with more than 50 per cent of micro, women-owned and SC/ST owned units and the balance amount would be mobilised through equities in special vehicles with bank borrowings and other sources.

Central facilities required for quality and government compliance, cold chain facilities for pharma products, central formulation and product development facilities, central environment treatment plant facilities and other common facilities will be part of these clusters.

Such clusters already exist in Baddi of Himachal Pradesh and Hardwar of Uttarkhand, Gurgaon in Haryana, Pattancheru, Pashmalyaram and Khazipalli of Andhra Pradesh, Alandur and Ambattur of Tamil Nadu, Thane, Nashik and Aurangabad of Maharashtra, Vadodra and Ahmedabad of Gujarat and Sikkim. The DoP wants to set up more clusters and improve the facilities in the existing clusters, according to the proposal.