ADMA wants Dept of Ayush to enhance subsidy provided under scheme nos 4, 5
The Ayurvedic Drug Manufacturers' Association (ADMA) wants the Department of Ayush to increase the subsidy provided under scheme no 4 and 5 to 50 per cent so that the Ayurveda, Siddha & Unani (ASU) drug
manufacturers can utilise the scheme for the benefit of the industry. As of now, scheme no 4 and 5 provides only 30 per cent subsidy i.e. upto 30 lakh towards upgrading quality control facilities which is very low. Moreover the subsidy is available only for one scheme at a time which is not industry friendly.
This centrally sponsored scheme is provided for the ASU manufacturers of the country so that they can improve and upgrade their Quality Control (QC) and manufacturing facilities with the government support. Scheme no 4 deals with provision regarding assistance to ASU drug manufacturing units to establish an
in-house quality control laboratory for the purpose of QC testing of all raw materials or finished products as per pharmacopoeial parameters including testing of ingredients heavy metals, pesticide residue, microbial load etc. Whereas scheme no 5 deals with assistance to ASU manufacturing units having a turnover of upto Rs.20.00 crore for acquiring US FDA/EU good manufacturing practices certification for their units.
Chandrakanth Bhanushali, general secretary, ADMA, points out, “Though the vision of the Department is very commendable its not proving to be very effective as of now. Mainly because the subsidy provided by the government which is just 30 per cent i.e. upto 30 lakh towards upgrading quality control facilities and manufacturing facility is very low compared to the demand. The minimum requirement to reach the GMP is almost one crore, so how will it be possible for a small scale or micro level ASU manufacturer whose annual turn over is not more than Rs.25 lakh per annum to benefit with just 30 per cent of subsidy.”
Other major problem faced by the ASU manufacturers is that the scheme provides 30 per cent subsidy only for one scheme at a time. Which means that the ASU manufactures will get subsidy for only one scheme whereas he will have to invest money from his own pocket for the other scheme which is quite high and out of reach for many ASU manufacturers.
“We would request the government to make certain changes in this matter for the betterment of the industry. We want the government to amend the subsidy to 50 per cent for each scheme as well as ensure the availability of soft loans from banks for the up gradation process,” Bhanushali expressed.
This is not an ADMA recommendation alone. In fact it has been earlier referred in the planning commission's XIth. plan steering committee report for the AYUSH sector as well. He clarified. “We are at the fag end of the XIth plan and are yet to partake in the fruits of promised plan proposals.”
Further he pointed out that this schemes should also be extended for clinical trials and new entrepreneurs. Clinical trials expenditure goes to minimum of Rs.5 lakh, depending upon the protocol of the product and the institution conducting the trial, so if this scheme is extended here it will be a great boost for the industry.
Whereas if this scheme is extended for new entrepreneur who wants to enter in the manufacturing of ASU medicines as per WHO GMP or as per Ayush Premium Mark he will be not facing any funding problems and thus will also act as a model for others.
manufacturers can utilise the scheme for the benefit of the industry. As of now, scheme no 4 and 5 provides only 30 per cent subsidy i.e. upto 30 lakh towards upgrading quality control facilities which is very low. Moreover the subsidy is available only for one scheme at a time which is not industry friendly.
This centrally sponsored scheme is provided for the ASU manufacturers of the country so that they can improve and upgrade their Quality Control (QC) and manufacturing facilities with the government support. Scheme no 4 deals with provision regarding assistance to ASU drug manufacturing units to establish an
in-house quality control laboratory for the purpose of QC testing of all raw materials or finished products as per pharmacopoeial parameters including testing of ingredients heavy metals, pesticide residue, microbial load etc. Whereas scheme no 5 deals with assistance to ASU manufacturing units having a turnover of upto Rs.20.00 crore for acquiring US FDA/EU good manufacturing practices certification for their units.
Chandrakanth Bhanushali, general secretary, ADMA, points out, “Though the vision of the Department is very commendable its not proving to be very effective as of now. Mainly because the subsidy provided by the government which is just 30 per cent i.e. upto 30 lakh towards upgrading quality control facilities and manufacturing facility is very low compared to the demand. The minimum requirement to reach the GMP is almost one crore, so how will it be possible for a small scale or micro level ASU manufacturer whose annual turn over is not more than Rs.25 lakh per annum to benefit with just 30 per cent of subsidy.”
Other major problem faced by the ASU manufacturers is that the scheme provides 30 per cent subsidy only for one scheme at a time. Which means that the ASU manufactures will get subsidy for only one scheme whereas he will have to invest money from his own pocket for the other scheme which is quite high and out of reach for many ASU manufacturers.
“We would request the government to make certain changes in this matter for the betterment of the industry. We want the government to amend the subsidy to 50 per cent for each scheme as well as ensure the availability of soft loans from banks for the up gradation process,” Bhanushali expressed.
This is not an ADMA recommendation alone. In fact it has been earlier referred in the planning commission's XIth. plan steering committee report for the AYUSH sector as well. He clarified. “We are at the fag end of the XIth plan and are yet to partake in the fruits of promised plan proposals.”
Further he pointed out that this schemes should also be extended for clinical trials and new entrepreneurs. Clinical trials expenditure goes to minimum of Rs.5 lakh, depending upon the protocol of the product and the institution conducting the trial, so if this scheme is extended here it will be a great boost for the industry.
Whereas if this scheme is extended for new entrepreneur who wants to enter in the manufacturing of ASU medicines as per WHO GMP or as per Ayush Premium Mark he will be not facing any funding problems and thus will also act as a model for others.
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