Govt extends Deadline for Industry for AMD-CF Scheme

The AMD-CF scheme comprises two sub-schemes: Assistance for Common Facilities (CF) and Assistance for Testing Facilities (TF)

The Health Master

February 15, 2024

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Last Updated on February 23, 2024 by The Health Master

AMD-CF Scheme

The Department of Pharmaceuticals (DoP), Govt of India has taken a significant step in promoting the growth of the medical devices industry by extending the timeline for the submission of applications under the Assistance to Medical Device Clusters for Common Facilities scheme (AMD-CF scheme).

Initially, the last date for filing applications was set for February 10, 2024; however, the deadline has been extended to March 15, 2024, providing potential candidates with additional time to apply.

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Background of the AMD-CF Scheme

The DoP invited applications on January 11, 2024, through the Udyamimitra portal.

The scheme, introduced on May 9, 2023, came with guidelines and a proposed financial outlay of Rs. 300 crore.

The primary objective was to offer financial assistance to strengthen both existing and new medical device clusters by creating common infrastructure facilities.

Furthermore, the DoP announced procedures for selecting a Project Management Agency (PMA) to oversee the scheme.

Industry Response

The announcement of the scheme received positive feedback from industry organizations, lauding the DoP’s initiative.

Experts anticipate that this move will play a crucial role in attracting both foreign and domestic investments in the rapidly growing MedTech space.

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Scheme Components and Financial Breakdown

The AMD-CF scheme comprises two sub-schemes: Assistance for Common Facilities (CF) and Assistance for Testing Facilities (TF).

Running for three years from 2023-24 to 2025-26, the scheme has allocated Rs. 240 crore for common facilities and Rs. 60 crore for testing facilities.

The financial distribution is planned over the three-year period to ensure effective utilization.

Assistance for Common Facilities (CF)

Under CF, the scheme aims to strengthen the capacity of medical device clusters by creating common infrastructure facilities.

Special Purpose Vehicles (SPVs) are expected to be formed by medical device manufacturing units in a cluster, with a minimum of five units as SPV members.

Clusters promoted by state governments may not need to form an SPV.

The support limit is 70% of the approved project cost or Rs. 20 crore, whichever is less. In certain regions, special grants will be available, demonstrating the scheme’s inclusivity.

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Benefits of Assistance for Common Facilities

The CF sub-scheme is designed to bring several benefits, including improvements in the quality of medical devices, regulatory compliance, increased availability of trained personnel, enhanced competitiveness of cluster units, and a reduction in manufacturing costs.

Assistance for Testing Facilities (TF)

The TF sub-scheme focuses on strengthening the availability of Medical Device Testing Laboratories.

National or state-level institutions, as well as private entities, can apply for assistance to establish or strengthen testing facilities for various classes of medical devices.

The application process emphasizes the importance of creating a separate account for the funds allocated to the project.

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Expected Outcomes

The AMD-CF scheme anticipates positive outcomes, including a boost in the manufacturing of quality medical devices, enhanced testing capabilities under the Medical Devices Rules (MDR), 2017, and increased availability of testing facilities.

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