Department of Pharmaceuticals (DoP) Scheme - Cluster Development Programme for Pharma Sector (CDP-PS)

The CDP-PS scheme is a central-sector initiative by the Department of Pharmaceuticals (DoP), launched to enhance the competitiveness, productivity, quality and innovation of pharmaceutical industry clusters in India, with particular focus on small and medium enterprises (SMEs). It was formally notified in December 2015. The purpose of the scheme is to support creation/upgradation of common facilities, infrastructure and services in pharma-sector clusters, so your business (as an MSME or startup) can benefit from better shared infrastructure, lower production cost and improved compliance capacity.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Cluster-based approach via SPV in PPP mode: The scheme emphasises that partner units in a geographic or thematic pharma cluster will form an SPV (Special Purpose Vehicle) which administers the common facility. Implementation is in Public-Private Partnership format enabling collaboration among firms, government and industry.
Grant-in-aid to set up/upgrade Common Facility Centres (CFCs): Assistance is provided as a one-time grant-in-aid to the SPV for creation or upgradation of common infrastructure and facilities which individual firms may not be able to set up alone.
Wide scope of common facilities: testing labs, R&D, effluent treatment, logistics, training: The scheme lists a variety of activities eligible under the common facility pool - for example, common testing facilities, R&D centres, training centres, effluent treatment plants (ETP), logistics hubs etc. Each cluster proposal can customise its mix.
Targeted cost reduction (20%) and quality / productivity improvement for SMEs: Among objectives are reducing production cost by up to 20% in clusters, enabling SMEs to access higher quality infrastructure, global standards and economies of scale.
Fixed funding size and support norms: up to Rs 20 crore or 70% of project cost: According to MSME-scheme listings, the nature of assistance under CDP-PS is the maximum of Rs 20 crore per cluster or 70% of project cost whichever is less; for difficult/backward regions the GoI share goes up to 90%.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Grant-in-aid for Common Facility Centre (CFC)	Up to ₹ 20 crore per cluster or 70% of project cost, whichever is lower; up to 90% for difficult/backward regions	Example: If a pharma cluster submits a project costing ₹ 25 crore, the maximum grant is ₹ 20 crore (since that is the cap). If the project cost is ₹ 10 crore, assistance could be 70% of ₹ 10 crore = ₹ 7 crore. In a backward region, assistance might be 90% of cost.
Upgradation of existing cluster/new cluster support	One-time grant via SPV for either new cluster setup or upgrading existing one	Example: A cluster of SMEs in a region decide to upgrade a shared testing lab — the SPV receives grant to establish the lab which all members can use.

Eligibility Criteria

Who can apply:

A cluster of pharma/manufacturing units (especially SMEs) must form a Special Purpose Vehicle (SPV) – a legal entity (Company, Society, Trust) with minimum 10 units as members.
The SPV must represent the cluster, manage and operate the common facility centre (CFC) created under scheme.
The cluster may be new or an existing cluster upgradation project.
The project must involve creation of common infrastructure/facilities benefiting the cluster units: testing labs, packaging, ETP, etc.

Who cannot apply:

Individual manufacturing units (not part of the cluster SPV) seeking assistance for their own production facility (the grant is for common facilities only).
Entities that do not form a proper SPV with legal structure and requisite members.
Projects that commence operations or benefit before obtaining scheme approval or signing required agreements may be disqualified. (implied via DPR and approval norms)
Clusters or facilities outside the defined eligibility or without required contributions as per scheme norms.

Documents Required

Legal formation documents of the SPV (MoA, Articles, registration).
Member list of SPV (with minimum 10 cluster units).
DPR covering technical, financial, marketing, quality, human resource aspects.
Land/building availability proof for common facility centre.
Cost estimates and contribution details (SPV share, state share if applicable).
Statutory clearances (if required).
Implementation plan with timelines.
Bank details of SPV, audited accounts (if existing).

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

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Option 2: Government Process via DoP

Form the SPV representing your pharma cluster (minimum 10 units).
Prepare a Detailed Project Report (DPR) covering the manufacturing process, technology gaps, quality systems, testing, cost, and business plan.
Submit the proposal to DoP via the Scheme Steering Committee (SSC) with required approvals and land/infrastructure availability.
On approval, release of grant-in-aid as per instalments (e.g., first mobilisation advance, then subsequent based on utilisation) occurs.
Post project completion, SPV operates the Common Facility Centre (CFC), charges user fee (differentiated for small units), maintains assets, and submits utilisation certificates & audits.

Option 3: Via State Government/Industry Association
A state government or industry association may support cluster formation and coordinate with DoP/PMC for DPR preparation and implementation.