Unlocking the future: The Uttar Pradesh Pharmaceutical & Medical Device Industry Policy 2023
The Uttar Pradesh government has unveiled the Pharmaceutical & Medical Device Industry Policy 2023, designed to boost investment, innovation, and development in the pharmaceutical and medical device sectors. This policy outlines a range of incentives tailored to meet the needs of MSMEs, large units, and mega units, with specific provisions to support industries in Bundelkhand and Purvanchal districts.
Key incentives for pharma units
1. Capital Subsidy
- Eligible Units:
- MSME Units: Defined by the Government of India.
- Large Units: Units with a capital investment of more than MSME levels but less than INR 100 crores.
- Mega Units: Units with a capital investment exceeding INR 100 crores.
- Subsidy Details:
- A capital subsidy of 15% on investments up to INR 200 crores, disbursed over five annual installments.
2. Interest subsidies
- On Machinery & Equipment:
- 5% per annum for five years on loans taken for procurement of plant and machinery, with a maximum of INR 1 crore per annum per unit.
- An additional subsidy of 2% per annum for seven years for units in Bundelkhand and Purvanchal districts.
- On Infrastructure:
- 5% per annum for five years on loans taken for building infrastructure for self-use, up to a maximum of INR 1 crore per annum per unit.
- On Research Quality Improvement:
- 50% per annum for five years on loans taken for research quality improvement, with a maximum subsidy of INR 2 crores per unit.
3. Tax and duty exemptions
- Electricity Duty:
- 100% exemption for 10 years.
- Stamp Duty:
- 100% exemption for eligible units.
4. Waste management incentives
- Interest Subsidy:
- 50% annual subsidy for five years on loans taken to set up waste management systems, up to a maximum of INR 10 lakhs.
- Common Boiler Projects:
- 35% subsidy for solid fuel projects and 50% for clean fuel projects, up to INR 2 crores.
5. Patent and certification support
- Patent Filing:
- Reimbursement of 100% of actual filing costs for domestic patents and 50% for international patents.
- Quality Certification:
- Reimbursement of 75% of costs for ISO certification and 50% for BIS certification.
6. Skill development incentives
- Stipend Refund:
- Refund of stipend for training under NAPS & CMAPS for six months for up to 10 trainees.
Incentives for Research and Development (R&D)
- R&D Institutes:
- Reimbursement of 60% of annual interest on loans for setting up R&D institutes.
- Clinical Trials:
- Reimbursement of 75% of total expenditure for clinical trials.
- Contract/Sponsored Research:
- 50% subsidy on eligible project costs for institutes situated within Uttar Pradesh.
Special package for bulk drug and medical device parks
- Interest Subsidy:
- A 10-year interest subsidy for units established in Bulk Drug Parks and Medical Device Parks.
- Air Cargo Handling and Freight Charges:
- Incentives as decided by the State Government for transporting raw materials and finished goods
Pharma park incentives
- Development Incentives:
- Horizontal Pharma Parks (minimum 10 acres) and Vertical Pharma Parks (minimum 3 acres) are eligible for several benefits, including:
- 50% annual interest subsidy on loans for land purchase for seven years, up to INR 1 crore per annum per park.
- 60% annual interest subsidy on infrastructure loans for seven years, up to INR 50 crores per park.
- 60% annual interest subsidy on loans for building common facilities for seven years, up to INR 30 crores per park.
- Horizontal Pharma Parks (minimum 10 acres) and Vertical Pharma Parks (minimum 3 acres) are eligible for several benefits, including:
- Capital Subsidy:
- 25% of Fixed Capital Investment (FCI) for common infrastructure and utilities, up to INR 25 crores over five years.
- Stamp Duty Exemption:
- 100% exemption for developers and 50% for the first units.
- Common Effluent Treatment Plant (CETP):
- 40% of the project cost for setting up CETP/Waste Management Systems, up to INR 10 crores. Total support from the Government of India and Uttar Pradesh shall not exceed 75% of the total FCI incurred.
Other incentives
- R&D Support:
- Incentives are on par with those offered by other states, primarily adopting the model used by Gujarat.
- Start-up Incentives:
- Incentives are aligned with the New Start-up Policy 2022, or as per the State Startup Policy 2022.
Conclusion
The Uttar Pradesh Pharmaceutical & Medical Device Industry Policy 2023 is a comprehensive initiative aimed at transforming the state into a leading hub for pharmaceutical and medical device manufacturing. By offering a wide range of subsidies, tax exemptions, and incentives for R&D, the policy seeks to attract significant investment and foster innovation in the sector. This policy is expected to play a pivotal role in boosting the state’s economy and positioning Uttar Pradesh as a key player in the global pharmaceutical and medical device industry.
For more details, click below link to download the official policy document.
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