Pharmaceutical Policy Overview
Sector Overview :
The Uttar Pradesh Pharmaceutical and Medical Device Industry Policy, 2023, heralds a promising future for entities operating within these sectors. This policy is designed to position Uttar Pradesh as a leading hub for pharmaceutical and medical device manufacturing, leveraging its expansive market, robust R&D infrastructure, and strategic incentives to facilitate growth, innovation, and sustainability.
Sector Overview
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Pharmaceuticals Sector : Marks a significant footprint with a 17% share of national sales, a 38.2% increase in exports between FY16-FY19, and Rs 3000 Cr investment through licensees, bolstered by 9 existing pharma clusters and 1 biotech park.
Manufacturing Base : Boasts 354 Formulation units, 38 Bulk Drug units, 54 Cosmetic Units, and 22 Medical Devices manufacturing units, highlighting rapid expansion.
Exports : Uttar Pradesh is positioned strategically with excellent infrastructure supporting the export-oriented pharmaceutical industry, enhanced by a vast network of roads, railways, airports, and the upcoming National Waterway-1 and multi-modal logistic hubs.
Objectives
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- Encourage cutting-edge pharmaceutical research, build world-class infrastructure and attract world’s best talent.
- Pharmaceutical Parks with best-in class infrastructure and technology.
- Promote creation of Intellectual Property (IP) in the sector.
- Promote Research & Development in the sector.
Enablers
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Human Resource and R&D Base : Supported by 208 Medical, Bio-Technology & Pharmacy colleges and 18 world-class Pharma Research Institutes, Uttar Pradesh has a perennial supply of qualified manpower and a strong R&D base, making it an attractive destination for pharmaceutical and medical device operations.
Infrastructure Advantages : Positioned on the Golden Quadrilateral and housing the largest railway network, Uttar Pradesh offers seamless connectivity for domestic and international trade.
- Production-Linked Incentive (PLI) Scheme for Pharmaceuticals Manufacturing.
Goverment support in establishing parks, providing plug-and-play industrial infrastructure with comprehensive facilities.
Investment and Fiscal Incentives
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Investors and technology firms are encouraged to leverage this unique opportunity to be part of Uttar Pradesh's technological renaissance. For detailed insights and to explore investment opportunities, reach out directly to the Project Management Unit under the supervision of the Nodal Agency.
Incentives to developers of pharma and medical device parks :
- 100% Exemption of Stamp Duty on purchase of Land.
- Interest subsidy upto Rs. 1 Cr per year on loan for land.
- Interest subsidy upto Rs. 10 Cr per year on loan for building infrastructure.
- Interest subsidy upto Rs. 5 Cr per year on loan for building common facilities.
- Capital Subsidy of 15% up to Rs. 25 Cr for developing common facilities and utilities.
Incentives to new pharmaceutical units :
- Capital Interest Subsidy upto Rs. 1Cr per year on loans for procurement of plant and machinery for 5 years.
- Infrastructure Interest Subsidy upto Rs. 1Cr per year on loans for developing infrastructure amenities for self-use.
- Industry Research Subsidy upto Rs. 2 Cr per year on loans for industrial research, quality improvement and procurement of plant, machinery & equipment for setting up of testing labs and quality certification labs.
- 100% Electricity Duty Exemption for 10 years.
- 100% Exemption of Stamp Duty on purchase of Land and lease of land/shed/building.
- Capital Subsidy of 15% up to Rs. 200 Cr on investment of plant and machinery.
Waste Management incentives :
- Interest subsidy for loan taken to set up waste management setup up to max Rs 10 lakh per year.
- For setting up common boiler project, subsidy of 35% (in case of solid fuel) and 50% (in case of clean fuel) of the fixed installation cost, up to Rs 2 Cr.
Patent Filing :
- Reimbursement of filing costs on domestic patents as well as international patents.
Quality Certification :
- Reimbursement of 75% of cost incurred for ISO certification and 50% of cost incurred for BIS certification.
Skill Development incentive :
- Refund of stipend for training under NAPS & CMAPS for 6 months for a maximum of 10 trainees.
- For setting up R&D institutes – Reimbursement of 60% of annual interest on loan.
- For Clinical Trials – Reimbursement of 75% of total expenditure.
- For Contract / sponsored research – 50% subsidy on eligible project cost to institutes situated within UP.
