UP Pharmaceutical & Medical Device Industry Policy 2023

Incentives to Pharma units –

• Capital Subsidy @15% of investment upto Rs 200 Cr to be provided in 5 annual instalments
• Interest Subsidies –
  • @5% p.a. for 5yrs on loan taken for procurement of P&M, upto max Rs 1 Cr p.a. per unit; Addtl subsidy @2% p.a for 7yrs for units in Bundelkhand and Purvanchal Districts
  • @5% p.a. for 5yrs on loan taken for building infra self-use, upto max Rs 1 Cr p.a. per unit;
  • @50% p.a. for 5yrs on loan taken for Research quality improvement, upto max Rs 2 Cr. per unit;

• Electricity Duty Exemption: 100% exemption for 10yrs
• Stamp Duty exemption @100%
• Waste Management incentives –
  • Interest subsidy for loan taken to set up waste management setup @50% annual for 5 yrs upto max Rs 10 lakh;
  • For setting up common boiler project: @35% (in case of solid fuel) and @50% (in case of clean fuel) of the fixed installation cost, upto Rs 2 Cr

• Patent Filing – Reimbursement of 100% of actual filing costs on domestic patents and 50% of actual filing costs on international patents
• Quality Certification – Reimbursement of 75% of cost incurred for ISO certification and 50% of cost incurred for BIS certification
• Skill Development incentive as refund of stipend for training under NAPS & CMAPS for 6 months for a maximum of 10 trainees

• Incentives for R&D and Innovations

• 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

• Special Package for units setting up at Bulk Drug Parks & Medical Device Parks

• Interest subsidy: For 10 years to units established in Bulk Drug Parks/Medical Device Parks
• Air Cargo handling and freight charges incentive: at rate decided by State Govt from time to time to transport raw material and finished goods in and out of the country

• Incentives to Pharma Park –

Horizontal Pharma Park developed over min 10acres of land and Vertical Pharma Park developed over min 3 acres of land will be provided following –

• Interest Subsidies–
  • @50% annual on loan taken to buy land for 7 years upto max. Rs 1 Cr per annum per park;
  • @60% annual on loan taken to build infra for 7 years upto max. Rs 50 Cr per park;
  • @60% annual on loan taken to build common facilities for 7 years upto max. Rs 30 crore per park
• Capital Subsidy: @25% of FCI (common infra & utilities) upto max Rs 25 Cr in 5years
• Stamp duty exemption at the rate of 100% to developers and 50% to units (1st)
• Grant for setting up CETP: @40% of project cost to set up CETP/ Waste Management System up Rs 10 Cr. Total support by GoI and GoUP shall not exceed 75% of the total FCI incurred in this purpose.

Other incentives

• R&D incentives including those for setting up R&D centres, clinical trials & executing research contract are at par to what other States are providing (Mostly, Guj. is adopted)
• Start-up incentives as per New Start-up Policy 2022, or may be omitted in the policy, as they will be covered under State Startup Policy 2022.

Nodal Agency: Food Security and Drug Administration (FSDA)

For more details, visit:
UP-Pharmaceutical-Medical-Device-Policy_060823.pdf