Strengthening of Pharmaceutical Industry-Assistance to Pharmaceutical Industry for Common Facilities (APICF)

The Assistance to Pharmaceutical Industry for Common Facilities is a sub-scheme implemented by the Department of Pharmaceuticals , under the Ministry of Chemicals & Fertilizers, Government of India. It was launched under the broader SPI scheme for the period FY 2021-22 to FY 2025-26.The purpose of APICF is to provide grant-in-aid support for pharmaceutical clusters to create common infrastructure facilities such as R&D labs, testing laboratories, effluent treatment plants, logistics & training centres, with the aim of improving quality, productivity, regulatory compliance and sustainability of Indian pharma clusters. As a pharma MSME or cluster participant your enterprise can benefit by using shared common facility infrastructure instead of bearing full cost individually, reducing the cost barrier to upgrade and meet higher standards.

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

Key Features

Support for pharmaceutical clusters through SPV or state-promoted cluster agencies: The scheme mandates that pharmaceutical manufacturing units in a cluster come together to form a legally independent SPV which acts as the implementing body for the common facility project.
Grant-in-aid up to 70% of approved project cost , higher in Himalayan/NE States: Under APICF, the limit of incentive is 70% of the approved project cost or ₹ 20 crore for general states. In Himalayan States/North-East, grant-in-aid may be 90% of project cost or ₹ 20 crore .
Eligible infrastructure: R&D labs, testing labs, effluent treatment, warehouse/logistics, training centres: The scheme lists key categories of common infrastructure eligible for support - for example R&D and testing labs help improve quality and compliance, effluent treatment plants support environmental norms, logistics and warehousing help supply chain consolidation, training centres uplift human capital.
Minimum cluster membership: at least 5 pharmaceutical units or state cluster entity: To apply, the SPV must include at least five independent pharma manufacturing units that are non-related parties.
Focus on MSME clusters to upgrade common infrastructure, support WHO-GMP/Schedule M compliance: A key aim of the scheme is to help clusters of MSME pharma units upgrade their collective infrastructure, meet international regulatory standards and enhance competitiveness.
Demand-driven, central sector scheme with online application window: The scheme is central sector and applications are accepted through the portal (e.g., via Small Industries Development Bank of India for project management. Windows are periodically opened for submission.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Grant-in-aid percentage	Up to 70% of approved project cost in general states; in Himalayan/NE states up to 90%.	Example: A pharmaceutical cluster proposes common facility costing ₹30 crore; in a general state up to 70% (= ₹21 crore) may be sanctioned .
Maximum grant amount	Up to ₹ 20 crore per cluster ; the same cap applies under higher % for NE/Himalayan.	Example: Even if 70% of project cost is ₹22 crore, the grant will be capped at ₹ 20 crore.
Eligible project cost	Project cost of common infrastructure only; land cost is typically excluded or separately addressed per guidelines.	Example: If land cost is ₹5 crore and infrastructure cost ₹25 crore, the grant will be calculated on ₹25 crore .
Implementation timeframe	Projects are expected to be completed within the stipulated period after approval.	Example: Upon final approval in April 2024, the cluster has until April 2026 to commission the common facility and claim grant.
Cluster contribution	SPV/cluster members must contribute minimum share (e.g., at least 30% of project cost) as promoter equity/loan.	Example: For a ₹20 crore project, cluster members must provide at least ₹6 crore (30%) as part of project cost.

Eligibility Criteria

Who can apply:

The applicant must be an SPV formed under Companies Act or similar law comprising at least five independent pharmaceutical manufacturing units .
Each participating pharma enterprise must hold at least 51% equity in the SPV.
The project must relate to creation of common facilities within a pharma cluster.
The SPV should submit a detailed project report, have land for the facility, obtain requisite statutory clearances, and complete project within the stipulated period.
Preference may be given to MSME clusters, cluster MSME units meeting certain criteria.

Who cannot apply:

Individual pharma units applying alone are not eligible; must be part of an SPV or cluster entity.
Projects that have already started construction or purchased equipment before scheme approval may be ineligible.
Mere trading, packaging without value-added infrastructure, may not count under “common facility”.

Documents Required

SPV registration documents
Names and details of pharma manufacturing units in the cluster
Detailed Project Report including infrastructure plan, timelines, cost estimates, financials
Land/lease documents for site of common facility
Quotations/estimates for machinery, civil works, infrastructure components
Statutory clearances: environmental, fire, building plan approvals etc.
Promoter/Cluster contribution proof
Bank sanction letters
Incubation/training centre plan
Utilisation Certificate format and undertaking to adhere to GFR/GoI norms

Application Process for the Scheme

Option 1: Apply with Bullit

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.

Recommended for: firms/clusters seeking structured support and faster approval.

Option 2: Official Route

Form an SPV with requisite membership and equity share.
Prepare DPR covering proposed CIF: rationale, cost, infrastructure plan, benefits to cluster units, location, timeline.
Submit application online via the portal specified by the Department of Pharmaceuticals / Project Management Agency along with required documents.
Scheme Steering Committee reviews proposal and grants in-principle approval.
Upon sanction, implement project, meet milestones, claim grant and maintain operations for specified lock-in / operation period.
Submit utilisation certificate and performance data as required.

Option 3: Through State Nodal Agency / Industry Association
You may coordinate with your State Pharma/Industrial Development Corporation or industry association which may facilitate cluster formation, link with SPV, assist in application process and act as liaison with DoP.