Assistance to Pharmaceutical Industry for Common Facilities (API-CF) Scheme 2024

The Assistance to Pharmaceutical Industry for Common Facilities (API-CF) is one of India’s most strategic government initiatives under the Strengthening of Pharmaceuticals Industry (SPI) scheme. Implemented by the Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers, the program focuses on creating common infrastructure and shared facilities to strengthen pharma manufacturing clusters, especially MSMEs.

At Finraja Consultancy Pvt. Ltd., we specialize in helping eligible pharma clusters, SPVs, and entrepreneurs access financial assistance under API-CF, prepare DPRs, and secure grant-in-aid with complete compliance and professional support.

Overview of the API-CF Scheme

The API-CF scheme aims to build tangible common facilities that enhance quality, productivity, regulatory compliance, and competitiveness in India’s pharmaceutical manufacturing ecosystem.

The scheme supports the creation of essential infrastructure such as:

• Common Testing & R&D Laboratories
• Effluent Treatment Plants (ETPs)
• Logistic Centers and Warehouses
• Training Centers for Skilled Workforce

Through these shared facilities, multiple units within a pharma cluster can collectively benefit from economies of scale, cost savings, and improved production standards — aligning with Atmanirbhar Bharat goals for healthcare self-reliance.

Objective and Vision of the Scheme

The Assistance to Pharmaceutical Industry for Common Facilities initiative seeks to:

1. Strengthen pharma clusters for sustained growth and competitiveness.
2. Improve quality standards and environmental compliance across manufacturing units.
3. Provide infrastructure and resources for common R&D, testing, and training.
4. Support MSMEs and existing clusters that lack the capital for independent facility development.

For many clusters, individual infrastructure investment is impractical. API-CF bridges this gap through structured government grant-in-aid support and strategic planning.

API-CF Eligibility Criteria

Eligibility is strictly defined to ensure professional management and financial viability. 

1. Special Purpose Vehicle (SPV):

• • Must include a minimum of five (5) pharma manufacturing units.
  • Should be a legally registered entity under the Companies Act, 2013 or Societies Registration Act, 1860.
  • Pharma enterprises must hold at least 51% equity in the SPV.

2. Financial Strength:

• • Combined net worth of SPV members must be equal to or greater than the total grant amount applied for.
  • Each member must maintain a net worth at least 1.5 times their proposed equity contribution.

3. Cluster-based Approach:

• • The SPV must represent an existing pharma cluster or regionally concentrated units seeking common infrastructure.

4. State-Government-Promoted Clusters:

• • • State-promoted clusters can act as de-facto SPVs if a separate executive committee and accounting system are established.

At Finraja Consultancy, we conduct a pre-eligibility audit to confirm that your cluster meets these parameters before applying, minimizing rejections or delays.

Funding Pattern and Financial Assistance (Grant-in-Aid)

The funding pattern under the API-CF scheme is one of the most attractive in the manufacturing sector, providing substantial government support for eligible projects.

Finraja’s Financial Assessment & CFA Support

Our in-house Cluster Financial Assessment (CFA) framework helps evaluate:

• Capital expenditure (CAPEX) vs eligible grant amount
• Cost components qualifying for DoP reimbursement
• SPV’s financial strength and contribution capacity
• Bank financing and dovetailing possibilities (without duplication)

This ensures that every rupee invested is strategically positioned for maximum subsidy realization under the scheme.

API-CF SPV Requirements and Compliance

Formation and governance of the SPV are critical for project approval. As per the official guidelines:

• SPV must demonstrate independent management and transparent governance.
• SPV contribution (30%) must be deposited upfront before fund release.
• Land and building valuation should be certified by an approved agency (Central/State Govt. or public financial institution).
• Lease period of minimum 30 years is mandatory if facilities are established on leased premises.
• Regular audits and utilization certificates (UC) must be filed as per GFR-2017 norms.

Finraja assists clusters in preparing MoA, AoA, SPV shareholding structure, project agreements, and bank tie-ups, ensuring complete compliance with DoP requirements.

Implementation Timeline and Disbursement Schedule

Grant disbursement follows a structured four-installment pattern after project approval:

Total project completion period: 2 years (extendable by 1 year).
Finraja ensures timely documentation, fund tracking, and disbursement coordination through our CFA monitoring system.

How to Apply for API-CF (with Finraja’s Assistance)

While the official application is routed under DoP, successful approval requires strategic preparation and financial structuring.

That’s where Finraja Consultancy Pvt. Ltd. plays a pivotal role:

1.Financial & Technical Eligibility Check:
We conduct a cluster readiness evaluation covering financial ratios, SPV composition, and project feasibility.

2.DPR & CFA Preparation:
Our experts design a Detailed Project Report aligned with DoP’s appraisal parameters — including gap analysis, cost justification, and measurable impact metrics.

3.Application & Liaison Support:
We assist in completing all documentation, submission through official channels, and representation before the Scheme Steering Committee (SSC) via authorized consultants.

4.Monitoring & Compliance:
After sanction, we manage UC filing, fund utilization reports, and audit coordination to ensure smooth release of subsequent installments.

By partnering with Finraja, clusters avoid procedural pitfalls and maximize subsidy realization with professional execution.

Key Benefits of API-CF for Pharma Clusters

• Access to world-class shared facilities for R&D, testing, logistics, and effluent management.
• Reduced operational cost and improved compliance with Schedule-M & WHO-GMP.
• Standardization of manufacturing quality across cluster units.
• Higher productivity and export competitiveness for MSME pharma units.
• Professional project management with minimal financial risk to individual firms.

Why Choose Finraja Consultancy Pvt. Ltd.?

Finraja Consultancy Pvt. Ltd. has proven expertise in government subsidy facilitation, financial structuring, and CFA for industrial clusters.

We specialize in:

• End-to-end API-CF Scheme Advisory & Application Support
• SPV and DPR formation assistance
• Subsidy documentation, fund tracking, and disbursement liaison
• Financial audit compliance and UC management

With years of experience across schemes like API-CF, RPTUAS, and PMPDS, we help pharma entrepreneurs transform projects into government-backed success stories.

Conclusion

The Assistance to Pharmaceutical Industry for Common Facilities (API-CF) scheme stands as a cornerstone in India’s journey toward pharmaceutical excellence and self-reliance. For eligible pharma clusters and MSMEs, this scheme opens doors to modern infrastructure, technological advancement, and long-term competitiveness.

However, the process involves multiple financial and technical evaluations — where Finraja Consultancy Pvt. Ltd. brings in unmatched expertise, precision, and end-to-end support.

Call us now: +91 9373114747 or visit: finraja.com/contact for quick assistance.