Pharmaceuticals Upgrade: Government Enhances Incentives for Health Sector

Government Enhancements to RPTUAS for Pharmaceuticals

The recent modifications in the Revamped Pharmaceutical Technology Upgradation Assistance Scheme (RPTUAS) reflect a commitment to improving pharmaceuticals within the healthcare industry. Initially launched in March, the scheme saw a weak response, approving only seven applications by August 2024, which is far below the target of 150 for the year.

Increased Incentives and New Categories

To address this, the Department of Pharmaceuticals (DoP) has increased the incentive amount to Rs 2 crore, up from Rs 1 crore. In a significant update, production equipment has been added as a new category for computing subsidy amounts, joining the previous six items eligible for support.

Challenges Faced by Pharma Companies

• Low industry participation has been attributed to challenges faced by companies.
• Despite available funds, certain gaps prevented businesses from accessing support.
• Recommendations from industry groups have influenced changes to the scheme.

Support for Small and Medium Enterprises

The primary objective of RPTUAS is to help pharma companies upgrade to Revised Schedule M and WHO-GMP standards. The scheme targets medium, small, and micro enterprises with a turnover of less than Rs 500 crore, with an expectation to support 300 units over FY25 and FY26, with a total outlay of Rs 300 crore.

As reported by J.P. Nadda, the minister of chemicals and fertilizers, the application window reopened in April 2024, with over 100 applications received. However, concerns remain about the capacity of the roughly 2,000 Indian GMP-certified drug manufacturing units to implement the required regulations effectively.