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Context

• The Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers announces the Revamped Pharmaceuticals Technology Upgradation Assistance (RPTUAS) Scheme.
• Aim: To upgrade technological capabilities of the pharmaceutical industry and align it with global standards.

Background:

• Approval follows comprehensive review by the Scheme Steering Committee.
• Guided by revised Schedule-M of the Drugs and Cosmetics Rule, 1945, issued by the Department of Health & Family Welfare on 28/12/2023.

Key Features:

Broadened Eligibility Criteria: 

• Reflecting a more inclusive approach, eligibility for the PTUAS has been expanded beyond Micro, Small and Medium Enterprises to include any pharmaceutical manufacturing unit with a turnover of less than 500 crores that requires technology and quality upgradation. Preference remains for MSMEs, supporting smaller players in achieving high-quality manufacturing standards.

Flexible Financing Options: 

• The scheme introduces more flexible financing options, emphasizing subsidies on reimbursement basis, over traditional credit-linked approach.
• This flexibility is designed to diversify the financing options of the participating units, facilitating a more widespread adoption of the scheme. 

Comprehensive Support for Compliance with New Standards: 

• In alignment with revised Schedule-M and WHO-GMP standards, the scheme now supports a broader range of technological upgrades.
• Eligible activities include improvements such as HVAC systems (HVAC stands for Heating, Ventilation, and Air Conditioning), water and steam utilities, testing laboratories, stability chambers, clean room facilities, effluent treatment, waste management etc. ensuring comprehensive support for participating units.

Dynamic Incentive Structure: 

• Pharmaceutical units with the following average turnover for the last three years will be eligible for incentive subject to a maximum of Rs. 1.00 crore per unit:-

Turnover	Incentives
(i) Turnover less than Rs. 50.00 crore	20% of investment under eligible activities
(ii)Turnover from Rs. 50.00 crore to less than Rs. 250.00 crore	15% of investment under eligible activities;
(iii) Turnover from Rs. 250.00 crore to less than Rs. 500.00 crore	10% of investment under eligible activities.

State Government Scheme Integration: 

• The revised scheme allows integration with state government schemes, enabling units to benefit from additional top-up assistance.
• This collaborative approach aims to maximize support for the pharmaceutical industry in their technology upgradation efforts.

Enhanced Verification Mechanism: 

• The scheme introduces a robust verification mechanism through a Project Management Agency, ensuring transparency, accountability and the efficient allocation of resources.

Impact and Conclusion:

• Department of Pharmaceuticals is confident that reform in the PTUAS Scheme will contribute to industry growth and compliance with global manufacturing standards.
• It underscores the Government's commitment to supporting critical pharmaceutical industry for nation’s health and well-being.

ALL ABOUT SCHEDULE M DRUGS: https://www.iasgyan.in/daily-current-affairs/schedule-m

PRACTICE QUESTION Q. Which of the following statements is/are true regarding the Revamped Pharmaceuticals Technology Upgradation Assistance (RPTUAS) Scheme? 1.It has been expanded beyond Micro, Small and Medium Enterprises to include any pharmaceutical manufacturing unit with a turnover of less than 1000 crores. 2.It allows integration with state government schemes. Choose the correct options from the following: A)      1 only B)      2 only C)      Both D)      None Answer B) 2 only