In view of planning commission's objection to its Rs 560-crore Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS), the Department of Pharmaceuticals (DoP) has asked the ministry for small and medium enterprise (MSME) to improve the Credit Linked Capital Subsidy Scheme (CLCSS) to make it more attractive and beneficial to the pharma units to upgrade their units as per the revised scheduled M.

VAt a high level meeting, held to discuss the issue on March 17, the pharma department asked the MSME to make the CLCSS scheme more attractive and beneficial to the industry as unlike other sectors, pharma manufacturers confront a dichotomized situation wherein they have either to close their units in the absence of requisite funds or comply with Schedule M. Senior DoP officials including secretary (pharma) and officials from MSME ministry and SIDBI participated in the meeting.

The pharma department also drove home the point to the MSME officials that closing of these units due to non-availability of requisite funds may not be in the interest of the economy and therefore it is imperative to support these units.

CLCSS scheme was launched by the MSME for the technology upgradation of small and medium industries in the country. But, there were few takers for the CLCSS scheme due to several complicated procedures and conditions which the SSI units found it difficult to meet. Finally the CLCSS scheme was discontinued by the planning commission from the current financial year due to lack of proper response from the industry.

After the failure of the CLCSS scheme, the union chemicals ministry proposed the PTUAS scheme to assist the small and medium drug manufacturing units for the technological upgradation of their manufacturing facilities in compliance with the good manufacturing practices (GMP). But, the Rs 560-crore project was turned down by the Planning Commission on March 2 this year on the plea that the since the government has already launched a scheme, CLCSS, for the purpose , there is no need to launch another scheme for the same purpose. The commission asked the chemicals ministry to revive the CLCSS scheme.