Pharmaceutical Policy in Kerala - Subsidy for Pharma Sector

The Pharmaceutical Policy in Kerala is implemented to revive and expand the present pharma business of the state. Pharmaceutical Policy in Kerala has introduced innovation infrastructure development and investment for manufacturing and research. The Pharmaceutical Policy in Kerala has been aimed at enhancing the competitive capacity and increasing new pharmaceutical production capacity for exporting the related health products. The Pharmaceutical Policy in Kerala has the objective for setting up of companies for operating special economic zones for pharma industries, skill development scheme for increasing capacity and expenditure incentive for research and development. The Pharmaceutical Policy in Kerala is the act for transformation of the state as a pharma city thus the expansion and diversification of the manufacturing of pharmaceuticals industries in the country including creation of employment.

The Pharmaceutical Policy in Kerala offers several benefits to enhance the pharmaceutical sector and stimulate economic growth in the state, including:

The Pharmaceutical Policy in Kerala provides 8 incentive programs to support the growth of the pharmaceutical sector, which are categorized as follows:

• Medical Equipment - One-time Reimbursement

  Subsidy Rate	Subsidy Amount	Limitations
  50% of the cost incurred for obtaining compliance certifications for medical devices manufactured in the State under domestic and international regulations	Rs 25 Lakh	Max. Rs 25 Lakh

• Financial Assistance

  Subsidy Rate	Subsidy Amount	Limitations
  Up to 50% of the cost	Maximum Rs 10 Lakh	Only to institutions in the State for setting up 3D Printing Labs to address the shortage of skilled human resources in this sector

• Low Interest Loans

  Subsidy Rate	Subsidy Amount	Limitations
  Loan at 4% interest (via interest subvention up to 6%)	Max. Rs 10 Lakh	Only for MSME

• Capital Subsidy Incentive

  Subsidy Rate	Subsidy Amount	Limitations
  a) Micro - up to 45%	a) Max. Rs 40 Lakh	Only for MSME
  b) Small - up to 45%	b) Max. Rs 100 Lakh
  c) Medium - up to 45%	c) Max. Rs 200 Lakh

• Access to Finance through IPO Route

  Subsidy Rate	Subsidy Amount	Limitations
  Reimbursement of 50% expenses	Max. Rs 1 Cr	Only for MSME

• Investment Subsidy

  Subsidy Rate	Subsidy Amount	Limitations
  Investment subsidy of 10% on fixed capital investment	Max. Rs 10 Cr., in phases	Only for large and mega industry
  b) Small - up to 45%	b) Max. Rs 100 Lakh
  c) Medium - up to 45%	c) Max. Rs 200 Lakh

• SGST Reimbursement

  Subsidy Rate	Subsidy Amount	Limitations
  100% reimbursement on capital investment	NA	Only for large and mega for 5 years

• Intellectual Property Creation

  Subsidy Rate	Subsidy Amount	Limitations
  Reimbursement of 50% of expenditure incurred	Max. Rs 30 Lakh	For patent, copyright, trademarks, GI registration, etc.