Medical Devices Park Scheme

Medical Devices Park Scheme: it is a government scheme that aims to ensure easy access to standard testing and infrastructure facilities through creation of world class common infrastructure facilities. Medical Devices Park Scheme is important for UPSC Prelims Exam 2023 and UPSC Mains Exam (GS Paper 2: Government policies and interventions for development in various sectors.)

Medical Devices Park Scheme Context

Recently, Ministry of Chemicals and Fertilizers has notified a Scheme for Promotion of Medical Device Parks to support the medical devices sector in our country.

Key points about Medical Devices Park Scheme

Objectives

• Easy access to standard testing and infrastructure facilities through creation of world class common infrastructure facilities.
  • It will lead to increased competitiveness, which will further result into significant reduction of the cost of production of medical devices.
• Reaping the benefits arising due to optimization of resources and economies of scale.

National Financial Reporting Authority

Benefits

• The Medical Devices Parks to be developed under the scheme will provide common infrastructure facilities at one place.
• It will create a robust ecosystem for the medical device manufacturing in the country and also reducing the manufacturing cost significantly.

Financial outlay

• The total financial outlay of the scheme is Rs. 400 crores.
• 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.

Stablecoins

Implementation of Medical Devices Park Scheme

In total, proposal from 16 States/UTs were received under the scheme.

• The selection of the States/UTs is based on the challenge method, which is reflected in the evaluation criteria of the scheme.
• The ranking methodology for States/UTs is based on the parameters prescribed in the scheme guidelines such as utility charges, State policy incentives, total area of the park, land lease rate, connectivity of the park, ease of doing business ranking, availability of technical manpower etc.
• Based on the evaluation, the proposals of State Government of Himachal Pradesh, Tamil Nadu, Madhya Pradesh and Uttar Pradesh have been given “in-principle” approval under the scheme.
• The scheme reflects the spirit of co-operative federalism where the Central Government and State Governments will partner to develop the Medial Device parks for better performance of the sector.

1000 Day Plan for 1 trillion Dollar Digital Economy

Sharing is caring!