Introduction: Common Facilities for Medical Devices Clusters Scheme
The Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers, Government of India introduced the Common Facilities for Medical Devices Clusters Scheme under the Strengthening of Medical Device Industry (SMDI) initiative. The primary objective is to strengthen medical device clusters by supporting the creation of Common Infrastructure Facilities (CIFs), enabling manufacturers to improve quality, reduce production costs, and enhance global competitiveness.
For medical device manufacturers, industrial clusters, Special Purpose Vehicles (SPVs), and state-promoted medical device parks, this Medical Device Cluster Scheme provides an opportunity to establish shared infrastructure that individual businesses may find difficult to develop independently.
As a subsidy consultancy, Finraja Consultancy Pvt. Ltd. helps eligible businesses understand scheme requirements, prepare project reports, assess financial feasibility, and support the end-to-end grant application process.
What is the Common Facilities for Medical Devices Clusters Scheme?
The Common Facilities for Medical Devices Clusters Scheme is one of the five components of the Strengthening of Medical Device Industry (SMDI) Scheme launched by the Department of Pharmaceuticals.
The scheme focuses on creating Common Infrastructure Facilities that can be shared among multiple medical device manufacturers within a cluster. Instead of each company investing individually in expensive research, testing, sterilization, logistics, or prototyping infrastructure, the scheme promotes shared facilities through an SPV or eligible government-promoted cluster.
The scheme primarily supports organizations that represent medical device manufacturing clusters rather than individual companies.
Eligible beneficiaries include:
1. Special Purpose Vehicle (SPV)
Medical device manufacturing units located within a cluster can jointly establish a Special Purpose Vehicle (SPV) to develop Common Infrastructure Facilities.
The SPV should consist of a minimum of five medical device manufacturing units.
2. Government-Promoted Medical Device Clusters
Medical device clusters promoted by State Governments may also become eligible under the scheme. In such cases, the implementing agency can be treated as an SPV if separate accounts are maintained, and an Executive Committee is constituted for project implementation.
Eligible Common Infrastructure Facilities
The Medical Device Common Facility Centre may include several types of shared infrastructure depending on the requirements of the cluster.
Indicative eligible activities include:
- Research & Development Laboratories
- Designing and Testing Centres
- Biomaterial and Biocompatibility Testing Centres
- Accelerated Aging Testing Facilities
- Medical Grade Machining and Tooling Centres
- Injection Moulding Facilities
- Medical Grade 3D Printing Facilities
- Sterilization Centres (ETO/Gamma)
- Animal Laboratories
- Toxicity Testing Facilities
- Radiology Component Facilities
- MRI Magnet Facilities
- Power Electronics Facilities
- Common Warehousing and Logistics Infrastructure
- Electronic Waste Management Units
- Emergency Response Centres
- Technology Incubation Centres
- Training Centres
- Rapid Prototyping Facilities
- Electromagnetic Interference (EMI) and Electromagnetic Compatibility (EMC) Centres
The guidelines also allow other allied infrastructure activities subject to approval by the Scheme Steering Committee (SSC).
Financial Incentives under the Common Facilities for Medical Devices Clusters Scheme
One of the biggest advantages of this Government Grant for Medical Device Manufacturing is the financial support provided for establishing Common Infrastructure Facilities.
Unlike many subsidy schemes that offer reimbursement after project completion, this scheme provides structured Grant-in-Aid support subject to approved project cost, eligibility conditions, and milestone-based implementation.
Grant Assistance for Common Facilities
The Department of Pharmaceuticals provides financial assistance for setting up Common Facility Centres within medical device clusters.
The grant support is as follows:
For Central or State Government-funded entities
- Grant of 70% of the eligible cost of equipment and machinery, subject to a maximum assistance of ₹20 crore, whichever is lower.
For Private Entities / SPVs
- Grant of 50% of the eligible cost of equipment and machinery, subject to a maximum assistance of ₹20 crore, whichever is lower.
Beneficiary Contribution
The scheme also requires beneficiary participation.
For Common Facilities:
- Government-funded entities are expected to contribute the remaining project cost after grant assistance.
- Private SPVs must contribute at least 50% of the approved project cost.
- The scheme does not permit duplication of funding for the same project component.
- Additional resources may be mobilized from other sources, provided they do not duplicate government support.
- Administrative and management expenses of the SPV during implementation cannot exceed 5% of the Grant-in-Aid.
Schedule for Release of Grant
Unlike many governments subsidy programs, this scheme follows a milestone-based disbursement process.
The Grant-in-Aid is released in four equal instalments of 25% each.
First Instalment – 25%
Released after:
- Minimum 25% SPV contribution is deposited.
- Indemnity Bond is signed after final approval by the SSC.
Second Instalment – 25%
Released after:
- Submission of bills.
- Utilization of at least 75% of the first instalment.
- Proportionate expenditure incurred by the SPV.
Third Instalment – 25%
Released after:
- Submission of bills.
- Full utilization of the first instalment.
- Utilization of at least 75% of the second instalment.
- Proportionate expenditure incurred by the SPV.
Fourth Instalment – 25%
Released after:
- Complete utilization of the second and third instalments.
- The SPV has mobilized and spent its full proportionate contribution corresponding to the first three grants.
The SPV must also submit Utilization Certificates (UCs) generated through the PFMS portal, certified by a Chartered Accountant, and countersigned by the Head of the SPV. Project accounts remain subject to audit by the Comptroller and Auditor General (CAG) of India.
How Finraja Consultancy Pvt. Ltd. Can Help
Preparing a successful application under the Common Facilities for Medical Devices Clusters Scheme requires technical, financial, and regulatory expertise. A complete proposal must align with the operational guidelines while demonstrating commercial viability and measurable outcomes.
At Finraja Consultancy Pvt. Ltd., we support eligible applicants through every stage of the process, including:
- Initial eligibility assessment.
- Identification of the most suitable project structure.
- Formation and advisory support for Special Purpose Vehicles (SPVs).
- Preparation of Detailed Project Reports (DPRs).
- Financial modelling and viability analysis.
- Grant amount estimation and funding strategy.
- Preparation of project documentation.
- Liaison support during the application process.
- Assistance with compliance requirements.
- Post-approval documentation and implementation support.
Our objective is to help medical device manufacturers and cluster developers maximize their chances of securing government financial assistance while ensuring compliance with the scheme guidelines.
Frequently Asked Questions (FAQs)
What is the Common Facilities for Medical Devices Clusters Scheme?
It is a Government of India initiative under the Strengthening of Medical Device Industry (SMDI) scheme that provides financial assistance for creating shared Common Infrastructure Facilities within medical device manufacturing clusters.
Who can apply under the scheme?
Eligible applicants include Special Purpose Vehicles (SPVs) formed by at least five medical device manufacturing units and certain State Government-promoted medical device clusters that meet the prescribed conditions.
What is the maximum grant available?
For Common Facilities, eligible projects can receive up to ₹20 crore, subject to the applicable percentage of project cost and eligibility conditions.
Is private sector participation allowed?
Yes. Private entities can apply through an eligible SPV, provided they meet the scheme’s ownership, equity, and contribution requirements.
Is a Detailed Project Report mandatory?
Yes. The project proposal should include a comprehensive business plan, financial projections, implementation schedule, and technical recommendations from a competent authority.
Conclusion
The Common Facilities for Medical Devices Clusters Scheme is a strategic initiative to strengthen India’s medical device manufacturing ecosystem through shared infrastructure, advanced technology, and collaborative cluster development. By supporting Common Facility Centres with substantial grant assistance, the scheme aims to improve product quality, reduce manufacturing costs, and enhance the global competitiveness of Indian manufacturers.
For eligible manufacturers, SPVs, and state-promoted medical device clusters, this scheme presents a significant opportunity to build world-class infrastructure with government support. However, securing approval requires careful planning, technical validation, financial feasibility, and strict compliance with the operational guidelines.
With expertise in government subsidy consulting, Finraja Consultancy Pvt. Ltd. can help applicants navigate the entire process—from eligibility assessment and DPR preparation to documentation, grant application, and implementation support—helping transform ambitious infrastructure projects into successful, funded initiatives.
Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.
