PTUF scheme may take three more months for notification
Joseph Alexander, New Delhi

The much-awaited Rs 560-crore Pharmaceutical Technology Upgradation Fund (PTUF) scheme, aimed at helping the small scale and medium level manufacturing units comply with the Schedule M norms, may take a few more months to be approved and get notified finally.

The scheme is learnt to be under consideration of the pharmaceutical department for final approval after the National Productivity Council (NPC) has submitted its recommendations on the plight of SSIs in the country recently. The scheme has to be finalised and get approved by the Finance Ministry and the Planning Commission, which will take at least three months more, the sources said.

Sources also indicated that the department is also looking into the suggestions made by the industry associations, apart from the recommendations of the NPC, while drafting the final scheme. Steps are being taken to expedite the approval and early implementation of the same to help the small and medium sector, sources said. The SSI sector had demanded for disbursing the fund on a lump-sum basis calculated at one time on the five per cent interest rate subsidy, while another section of the industry wanted the scheme should cover the entire purchase cost including plant and machinery instead of just machinery.

Though the Planning Commission had earmarked Rs 340 crore for the project during the current Five Year Plan, it was in-principle approval subject to the clearance of the final project. It means that the scheme should be cleared again by the planning panel, sources said. The scheme was supposed to be in force from 2007-08 financial year, it was delayed as the assessment of SSIs was pending for which the NPC was entrusted the task. The NPC, after failing to furnish the details as per the original plan, recently submitted the report to the Government. The report has been circulated among the concerned departments for scrutiny and the Pharma Department may have the final say over it as no more meetings are expected to be held either with industry or other agencies.

Source: www.pharmabiz.com
19th August 2008

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