51 pharma firms get PLI approval
The PLI scheme provides financial incentives on the incremental sales and in-vitro diagnostic medical devices to selected applicants based on pre-defined selection criteria
image for illustrative purpose
Atmanirbhar In Pharma
- Promotion of domestic manufacturing
- Producing critical key starting materials (KSMs), drug intermediates (DIs), APIs in India
- Incentives will be paid for 6 yrs
New Delhi: The central government has approved 51 drug makers under the Production Linked Incentive (PLI) scheme. The objective of the PLI scheme in the sector is the promotion of domestic manufacturing of critical key starting materials (KSMs), drug intermediates (DIs) and active pharmaceutical ingredients (APIs) in India.
There are four target segments, official sources told Bizz Buzz. The four segments are: key fermentation based KSMs and DIs; fermentation based niche KSMs, DIs, and APIs; key chemical synthesis based KSMs and Dis; and other chemical synthesis based KSMs, Dis, and APIs.
For key fermentation based KSMs and DIs, four companies have been approved; for fermentation based niche KSMs, DIs, and APIs, six; for key chemical synthesis based KSMs and DIs, six; and for other chemical synthesis based KSMs, DIs, and APIs, 35.
The PLI Scheme for Pharmaceuticals is based on the strategy of Atmanirbhar Bharat that aims to enhance India's manufacturing capabilities and exports in ten sectors. The operational guidelines for the scheme inviting applications from the pharmaceutical industry were issued on June 1, 2021, by the Department of Pharmaceuticals after intensive consultation with industry, related departments, and the NITI Aayog, officials said.
Another objective of the scheme is to create global champions out of India which have the potential to grow in size and scale, using cutting-edge technology and thereby penetrate the global value chains.
The PLI scheme provides financial incentives on the incremental sales (over the base year) of pharmaceutical goods and in-vitro diagnostic medical devices to selected applicants based on pre-defined selection criteria. The incentives will be paid for a maximum period of six years for each participant depending upon the threshold investments and sales criteria to be achieved by the applicant.
The total quantum of the incentive for the scheme is Rs15,000 crore. SIDBI is the project management agency for the scheme. The applications are invited to ensure fair competition and broad coverage among the industry players, officials said.
To achieve self-reliance and minimize import dependency in the country's essential bulk drugs, the Department of Pharmaceuticals initiated a PLI scheme to promote domestic manufacturing by setting up Greenfield plants with minimum domestic value addition in four separate 'target segments' with a cumulative outlay of Rs6,940 crore from the current fiscal to 2029-30, sources said.
