Centre notifies Scheme for “Promotion of Medical Device Parks”

• Integrity Education, Delhi
• 25, Sep 2021

The Government of India has taken a key initiative to support the medical devices industry to reach its potential in the coming years identifying the industry as a sunrise sector with great potential for diversification and employment generation. 

Objectives of scheme

• Easy access to standard testing and infrastructure facilities through creation of world class common infrastructure facilities for increased competitiveness will result into 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.

Scheme details

• The Medical Devices Parks to be developed under the scheme will provide common infrastructure facilities at one place thereby creating a robust ecosystem for the medical device manufacturing in the country and also reducing the manufacturing cost significantly.
• The total financial outlay of the scheme is Rs. 400 crore and the tenure of the scheme is from FY 2020-2021 to FY 2024-2025.
• The financial assistance to a selected Medical Device Park would be 70% of the project cost of common infrastructure facilities.
• In case of North Eastern States and 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.