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Government of India ยท Dept. of Pharmaceuticals

There's a Scheme That Pays Back Part of Your Schedule M Upgrade Cost

It is called RPTUAS. It was announced in 2024, the rules have since been revised more than once, and many manufacturing units either have not heard of it or believe it does not apply to them. This note explains what the scheme is, what a unit can claim, who qualifies, and how to apply.

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Administered by
SIDBI (as PMC)
Launched
2024
Applies to
Existing pharma units
Latest revision
21 Mar 2026
The Scheme

What RPTUAS Is, and What It Pays For

The Revamped Pharmaceutical Technology Upgradation Assistance Scheme is run by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers. It sits under a larger scheme called Strengthening of Pharmaceuticals Industry. Its stated purpose is to help existing pharmaceutical units upgrade their production facilities so they can obtain Revised Schedule M and WHO-GMP certification. The support is given as a subsidy on a reimbursement basis, so the unit spends first and is paid back a portion afterwards.

Eligible Spend

What the money can be used for

The guidelines list the categories of expenditure that count towards the subsidy.

  • Utilities, meaning HVAC, water and steam systems
  • Clean room facility
  • Testing laboratory and stability chamber
  • Effluent treatment and waste management
  • Consultation and certification expenses
  • Any other item, if the scheme's Technical Committee recommends it
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Worth knowing

The list is about the physical plant and the certification work around it. Software is not named as an eligible category. If you want to know whether a particular cost qualifies, that question is best put to SIDBI, who administer the scheme.

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The benefit

What a unit can claim

The benefit is a subsidy, paid back to the unit after the money has been spent and the certification obtained. It is not a grant paid up front, and it is not a loan.
How much a unit receives is worked out as a share of its eligible expenditure, and that share depends on the unit's average turnover over the preceding three years. Smaller units are placed in a higher bracket than larger ones. There is also an upper ceiling on the amount any one applicant can receive.

The terms that changed in the unit's favour

Three conditions from the earlier version of the scheme have been removed or relaxed. If a unit looked at this in 2024 and walked away, these are the reasons it may be worth looking again.

  • No bank loan required โ€” The earlier scheme was credit linked, so the benefit was tied to a sanctioned loan. The revised scheme reimburses directly instead.
  • No bank guarantee, no penalty clause โ€” Both were in the earlier guidelines. Both have been deleted.
  • Only one certificate is needed to start claiming. โ€” Since the corrigendum of 21 March 2026, either the Revised Schedule M certificate or the WHO-GMP certificate is enough to claim the first instalment. The other follows later.
On the Numbers

The percentage brackets and the ceiling have both been revised since the scheme began, and published sources don't agree on the current figures. We've left them out on purpose rather than print a number that may be out of date โ€” they're in the guidelines linked below.

Eligibility

Who fits

The scheme was originally written for MSMEs. It was later widened. These are the questions that decide whether a unit qualifies.

Is this only for small units?
No โ€” the most common misunderstanding. The scheme originally covered only MSMEs; the revised guidelines widened it to existing pharmaceutical units below a stated turnover threshold. Preference still goes to MSMEs, but a larger unit isn't automatically excluded.
Does my unit have to already exist?
Yes. The scheme upgrades existing pharmaceutical manufacturing units. It isn't intended for setting up a new plant.
When does the spending have to have happened?
Investment made for upgradation after 1 January 2024 is considered for the subsidy. Spending before that date isn't counted.
Do I need a bank loan to apply?
No. A unit may still take a loan to fund the work if it chooses, but the subsidy itself no longer runs through a lender.
Do I need both certificates before I can claim anything?
Not any more. Under the corrigendum of 21 March 2026, a unit may submit either the Schedule M certificate or the WHO-GMP certificate with its certified expenditure to claim the first instalment. The other certificate follows with the second. Before this change, the Schedule M certificate was required up front.
Can I also claim under a state government scheme?
The scheme allows integration with state government schemes, which can mean additional top-up assistance. Confirm the position on other central schemes against the current guidelines before applying.
Is there a penalty if the upgrade isn't completed?
The earlier penalty clause, which included a bank guarantee requirement, has been deleted. The one condition that remains is the five-year restriction on selling or repurposing assets bought with this assistance.
Applying

How a unit applies

Applications are made online through the portal run by SIDBI, who act as the scheme's project management consultant. The process laid out in the guidelines runs as follows.

1
Prepare a gap analysis
Before anything else, the unit needs a detailed gap analysis of its existing manufacturing facility. This document sets out where the plant currently falls short of Revised Schedule M and WHO-GMP requirements. Nothing moves without it.
2
Apply online in the prescribed format
The application is submitted through the scheme portal, with the gap analysis attached, to be shortlisted.
3
The gap analysis is examined
The project management consultant reviews it and recommends an estimated subsidy amount for reimbursement. The guidelines set a timeline of one month from submission of the gap analysis for the proposal to be scrutinised and recommended onward to the Scheme Steering Committee.
4
Do the upgrade work
The unit carries out the upgradation and obtains certification from the drug regulatory authority.
5
Claim the first instalment
Submit either the Revised Schedule M certificate or the WHO-GMP certificate, together with a chartered accountant's certificate of expenditure incurred on eligible activities after 1 January 2024.
6
Verification and release
The expenditure is verified against the eligible categories, the Scheme Steering Committee approves, and the amount is released directly into the applicant's bank account.
7
Claim the final instalment
The remaining certificate and the certified expenditure are submitted, verified, and the balance released on approval.
The Practical Bottleneck

Most units do not stall on the form. They stall on the gap analysis, because it requires an honest, documented account of what the facility is missing. That document is the first real piece of work, and everything downstream depends on it.

Works With

Who Administers and Certifies the Scheme

Dept. of Pharmaceuticals SIDBI (PMC) Ministry of Chemicals & Fertilizers Scheme Steering Committee Drug Regulatory Authority State Schemes
Sources

Where This Comes From

Every statement on this page is taken from the documents below. Nothing here is our interpretation of what the scheme might allow. Read the originals before you act.

  1. Press Information Bureau, Department of Pharmaceuticals announces the Revamped Pharmaceuticals Technology Upgradation Assistance Scheme โ†—The official announcement. Purpose, broadened eligibility, reimbursement basis, state scheme integration.
  2. Dept. of Pharmaceuticals โ€” SPI scheme guidelines โ†—The operative guidelines. Intended beneficiaries, eligible activities, the application process, deletion of the penalty clause, the five year asset condition.
  3. Department of Pharmaceuticals, Scheme for Strengthening of Pharmaceuticals Industry โ†—The umbrella scheme page, where current documents and any further corrigenda are published.
Need Help Planning the Upgrade?

We Don't File Your Application. We Help With the System Side.

If your gap analysis turns into ERP, document or reporting changes as part of the Schedule M upgrade, that's where we come in. Book a free consult and we'll look at where it fits.

Book a Free Consultation โ†’
No commitment. We don't process RPTUAS applications ourselves.

This note is a plain summary prepared for pharmaceutical manufacturers, not legal or financial advice. The scheme guidelines have been modified several times since 2022 and may be revised again. Figures, limits and deadlines have been deliberately left out because they've changed across versions. Confirm the current position against the source documents, or with SIDBI, before you rely on anything above.

TCB Infotech

We don't process these applications. We put this together because the units we work with kept asking about it.

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