DOP Enhances Pharmaceutical Upgradation Incentives to Elevate Healthcare Standards

DOP Increases Incentives for Pharma Units

The Department of Pharmaceuticals (DOP) has announced significant modifications to the Revamped Pharmaceutical Technology Upgradation Assistance Scheme (RPTUAS) in response to insufficient uptake since its launch. As of August 2024, only seven applications had been approved, far below the goal of 150 for the fiscal year. To remedy this, the DOP has raised the maximum incentive from Rs 1 crore to Rs 2 crore, while introducing a new expenditure category for production equipment.

Key Changes to RPTUAS

• Increased Incentives: The DOP will now provide a maximum incentive of Rs 2 crore.
• New Category for Equipment: Expenditures for production equipment will now be eligible for subsidy calculations.
• Additional Installment Payment: The amount released across two installments for scheme participants has been increased.

Addressing Industry Challenges

Industry leaders, including Viranchi Shah from the Indian Drugs Manufacturers Association (IDMA), noted that several challenges hindered companies from leveraging available funds. The DOP is committed to improving participation by addressing these gaps based on feedback from the industry.

Goals of the RPTUAS

The primary objective of RPTUAS is to enable pharma companies to upgrade their manufacturing facilities to meet Revised Schedule M and WHO-GMP standards. This initiative is focused on benefiting medium, small, and micro enterprises with turnovers below Rs 500 crore, aiming to assist a total of 300 units over the upcoming fiscal years 2025 and 2026 with a total investment of Rs 300 crore.