(a) whether banks are not giving loans for modernization and upgradation of bulk drug
units to meet their obligations for schedule M. vide notification under GSR No. 894 dated
December 11, 2001 issued by Ministry of Health;
(b) whether in absence of such loans nearly half of the bulk drug industry in the small
scale will close down and exports will decline; and
(c) if so, the steps the Government have taken to prevent such closure?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANANDRAO V. ADSUL)
fa) to fc): The Schedule W of Notification under GSR No.894 dated 11th December,2001 Issued
by Ministry of Health & Family Welfare has nothing to do with the loaning by Banks for
modernization and upgradation of bulk drug units, which, among others, updates and harmonises
the existing Good Manufacturing Practices (GMP) from time to time to update the GMP
requirements. For this purpose, under Technology Modernisation Fund Scheme of SIDBI, the
above requirements can be covered. Other related Scheme is Credit Linked Capital Subsidy
Scheme. Further need based support is also provided by SIDBI to SSI Units for acquiring
the ISO 9000 certifications for improving the quality of the products manufactured by these
Units. Reserve Bank of India does not capture data on loans by Banks to the bulk drug units
in the SSI Sector.