DoP extends timeline for tender to select PMA for AMD-CF scheme

Our Bureau, New DelhiThursday, June 1, 2023, 08:00 Hrs  [IST]

The Department of Pharmaceuticals (DoP) has extended the timeline for the eligible Central Public Sector Enterprises (CPSEs) and Public Financial Institutions (PFIs) to apply as a Project Management Agency (PMA) for Assistance to Medical Device Clusters for Common Facilities (AMD-CF) scheme, till June 9, 2023.

The DoP has invited sealed bids from CPSEs/PFIs (government company) for providing services of PMA for the scheme with deadline to submit proposals latest by May 26, 2023 at 5 pm, with conditions that any proposal received by the DoP after the deadline shall be rejected and returned unopened to the bidder.

With the latest extension, the timeline for submission of proposal has been extended up to 5 pm on June 9, 2023.

The bidders has raised queries on the closure of the project on time, stating that for successful project closure, flow of funds in the project is a crucial matter and in any approved project, closure would depend on timely equity infusion, speedy award of contracts, meeting disbursement of instalments of Term loan and grant-in-aid. The bidders suggested that while the PMA may put best efforts for closure, it should not be considered responsible for delay in the project, if any.

The DoP, in response, remarked, “While the concerns are noted, the responsibility of the PMA to pursue with the selected SPV to complete the task in time cannot be waived off. While keeping the clause in the RFP as it is, the Department will examine the role played by the PMA in pursuing with the selected agency for completion of the project as per time-line, wherever default occurs. The PMA is expected to bring the issues of the SPV to the notice of the Department for inter- departmental coordination for Redressal.”

While the bidders also suggested change in the technical shortlisting criteria and payment terms proposed in the RFP, the department refused to change the terms.

Earlier in May, the department has recently come out with the guidelines for the scheme with proposed financial outlay of Rs. 300 crore to offer financial assistance to strengthen the existing and new medical device clusters through creation of common infrastructure facilities.

The guideline said that the Scheme Steering Committee (SSC) for the Scheme, which would provide direction for effective implementation of the Scheme, evaluate and recommend proposals of the scheme among other responsibilities, would engage the services of the PMA, that has experience in developing labs and common facilities, financing or executing the cluster development/technology upgradation projects or upgradation projects from the stage of conceptualisation to commissioning.

The PMA would act as a bridge between the SSC and the Special Purpose Vehicle (SPV), and will be a catalyst in expeditious implementation of the projects in a systematic, professional and transparent manner, it said. The period of consultancy will depend on the requirement of individual cluster and testing labs as approved by the SSC.

DoP provides Financial Assistance for creation of common facilities to Medical Device Clusters and assistance for setting up Testing Facilities to the Institutes under the scheme which helps to create tangible assets as Common Facility Centers (CFCs). The list of common facilities and testing facilities is illustrative and each cluster could have its own specific requirement based on the nature of units being set up and the products proposed to be manufactured. The Scheme Steering Committee (SSC) shall approve the project components and funding thereof depending upon the merits of the proposal.

The DoP has said that the PMA would be responsible for sensitisation of the Industry/potential beneficiaries on the Scheme and its benefits and also guiding them to form Special Purpose Vehicle (SPV), in drafting its Memorandum and Article of Association. They would be responsible to assist DoP in drafting and issuing Invitation of Expression of Interest (EoI)/Request for Proposal for inviting projects under the Scheme.

The PMA should devise the prescribed application formats and list of supporting documents as well as the appraisal methodology for approval of SSC/DoP, formulate Evaluation Criteria and to assist DoP in the selection of Projects from the Proposals received in response to EoI/ RFP and conduct preliminary examination of the proposals received from states/UTs/ SPVs and seeking additional/necessary information including documents from States/UTs/SPVs if required for completeness of the proposals.

It also has the responsibility for appraisal of proposals and making appropriate recommendations to the SSC for approval of proposals under the Scheme, appraisal of DPRs including financial viability, commercial sustainability and socio-economic impact of the projects.