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The Scheme Objectives:

To fill in the critical gaps in the sector especially related to standardization, quality assurance and control, productivity, marketing, infrastructure and capacity building through a cluster based approach. preferably for classical ASU and Homoeopathic drugs.

To encourage the level of organisation in the sector thereby creating social capital for sustainability of collective initiatives.

Department of AYUSH would allocate Rs 121.75 Crores in the 12 th five year plan to fund the projects under the scheme.


The assistance under the scheme would be available to units operating in the following sectors; located in existing clusters i.e. a group of AYUSH enterprises located in close proximity:

(i) Ayurveda

 (ii) Siddha

 (iii) Unani

(iv) Homeopathy

(v) Yoga and naturopathy

SPV formed by at least 15 enterprises located in an existing cluster i.e. a group of AYUSH enterprises located in close proximity: shall be eligible for funding under the scheme. Out of 15 participating units, at least 75% should be manufacturing units having valid GMP certificates for manufacture of AYUSH drugs

Out of which 5 participating units should have Annual turnover of at least Rs.20 lakhs and another 5 participating unit should have Rs.50.00 lakhs turnover to ensure viability of the cluster

Financial Assistance

(a) The assistance would be restricted to 60 % of the Project Cost subject to a maximum of Rs. 15.00 crores. The remaining 40% would be required to be arranged by the SPV through equity, borrowings from Banks / Financial Institutions and other sources

Release of Funds

  • 20% as mobilization advance, on Final Approval of the project by PAC
  • 40% as II nd installment

40% as III rd installment

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