Financial Daily from THE HINDU group of publications
Saturday, Nov 12, 2005


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Industry & Economy - Pharmaceuticals


TUF scheme planned for small drug units

P.T. Jyothi Datta

Mumbai , Nov 11

THERE may be some cheer for small-scale drug manufacturers trying to upgrade production facilities. The Centre plans to institute a Technology Upgradation Fund Scheme (TUFS) for the pharma sector, similar to the one in the textile sector.

The proposed scheme will help small-scale drug manufacturers struggling to meet the Schedule M deadline that made Good Manufacturing Practices (GMP) mandatory from July, a senior official with the Chemicals and Fertilisers (C&F) Ministry told Business Line.

SIDBI will be the nodal agency operating the scheme, which is expected to be rolled out in about three months, the official said.

As part of the scheme, the Government will subsidise about five per cent of the interest rate on the loan taken by a small-scale drug manufacturer, the official with the nodal Ministry said. At present small-scale manufacturers pay 10-11 per cent interest, he added.

Several small-scale drug manufacturers had their back against the wall with the Schedule M norms coming to effect this year. Despite repeated extensions, some manufacturers were unable to meet the norms.

Forcing defaulters to close down would have affected the employees of these units, the official said. It was against this backdrop that the C&F Ministry planned to institute the TUF scheme, specifically to help small-scale drug units meet the GMP norms, the official added.

SIDBI could further tie up with other banks to increase the coverage of the scheme, he added.

The official clarified that the proposed TUF scheme for small-scale drug manufacturers was in addition to existing schemes for small and medium enterprises across different sectors.

Small-scale drug companies felt an excise-duty related directive from the Centre earlier this year had further queered the pitch against them.

They felt they were at a disadvantage, as big pharma companies leveraged the benefit of tax havens such as Himachal Pradesh or Jammu, industry representatives said.

The Ministry official said that about 2,000 small-scale drug units were expected to avail themselves of the scheme and, for starters, the Ministry was looking at loans of up to Rs 35 lakh.

Eligibility criteria would be outlined and loans given to small drug units meeting these requirements, he said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
`Make rural India the back office of urban India'


Monsoon eases as cold grips AP
Taxability of non-residents in India
Manufacturing sector shines — IIP growth lower at 7.3 pc in September
Bengal must take up fiscal correction: Chidambaram
Prompt-start projects: Eco Ministry seeks extension of deadline
Centre accedes to Revised Kyoto Convention
DDT set to make a comeback as malaria control agent
ICICI Bank to manage US-India fund to fight AIDS
Mangalore varsity to host workshop on yoga therapy
Hotels going full even before season warms up
Dip in crude prices, oil bonds may help oil cos post profits
No plan to link gas cylinder with ration cards: AP Govt
TUF scheme planned for small drug units
TNEB computerised billing in Tiruchi
National Steel Policy: Govt to encourage iron ore trading for uniform availability
New downlinking norms — Foreign channels given 6 months for registration
Over 100 cos may bid in 2nd round FM radio privatisation
MTV plans new tack to draw more youth viewership
IIM-A ties up with ESSEC for dual degree
Suffolk varsity bid to woo Indian students
Govt may allow real estate investment trusts
Real estate VC funds target 15-30 pc returns — Plan investments in residential, retail & IT/ITeS/BPO space
DLF clarifies
Indian, Chinese leather companies exploring collaboration
High prices take toll on bullion demand
BIS plans to make gold hallmarking mandatory
Call to accord core industry status to paper
Policy makers urged to encourage packaging ahead of food processing
Gulf states flush with cash surpluses — `India must tap funds for mega projects'
Seminar on labour agenda on Nov 18 in Kochi
Food processors, retailers to explore supply opportunities at Foodpro
India trade fair to focus on power, communications
Refinery technology meet in Hyderabad from Nov 14
IIM-A annual business fest begins on Nov 24
Wedding exhibition in Kochi
World Diabetic Day on Nov 14
Exim Bank launches schemes to promote SME exports
AP unveils project to protect IPRs on traditional medicine
AP CM keen on launching of Vizag-Araku train service
Scenic Shangri-la
Don't suspect cos named in Volcker report: Assocham


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line