Scheme for “Promotion of Medical Device Parks”, a key initiative to support the medical devices, notified

What is the News?

The Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers has notified the Scheme for “Promotion of Medical Device Parks”.

What is the Scheme for Promotion of Medical Device Parks?

Under the scheme, medical parks will be developed to provide common infrastructure facilities in one place thereby creating a robust ecosystem for medical device manufacturing in the country and also reduce the manufacturing cost significantly. 

Objectives of the Scheme

Easy access to standard testing and infrastructure facilities through the creation of world-class common infrastructure facilities for increased competitiveness. This will result in a significant reduction of the cost of production of medical devices, leading to better availability and affordability of medical devices in the domestic market.

Reaping the benefits arising due to optimization of resources and economies of scale.

Other Features of the Scheme

Duration: The total financial outlay of the scheme is Rs. 400 crores and the tenure of the scheme is from FY 2020-2021 to FY 2024-2025. 

Financial Assistance: ​​The financial assistance to a selected Medical Device Park would be 70% of the project cost of common infrastructure facilities.

In the case of the North-Eastern States and the Hilly States, financial assistance would be 90% of the project cost. Maximum assistance under the scheme for one Medical Device Park would be limited to Rs. 100 crores.

Source: This post is based on the article ”Scheme for Promotion of Medical Device Parks, a key initiative to support the medical devices, notified” published in PIB on 23rd September 2021.