New PLI framework for medical devices on anvil
Govt sets up a committee to examine and give recommendations on any technical issues referred by the Project Management Agency (PMA)
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With an objective to boost domestic manufacturing, attract large investment in the medical device sector, the DoP has earmarked Rs3,420 crore for the PLI scheme till 2027-28
New Delhi: The central government has come up with new guidelines for the production-linked incentive (PLI) scheme for promoting the domestic manufacturing of medical devices. The Department of Pharmaceuticals (DoP), under the Ministry of Chemicals and Fertilizers, has constituted a committee to examine and give recommendations on any technical issues referred by the Project Management Agency (PMA) or the Empowered Committee (EC), official sources told Bizz Buzz.
The EC, to be headed by NITI Aayog CEO, comprises the Secretaries of the Departments of Pharmaceuticals, Health & Family Welfare, Commerce, Promotion of Industry & Internal Trade, and Environment, and the Director General of Foreign Trade.
Further, it will invite experts as special invitees, as and when needed. The PLI scheme will have the tenure till 2027-28.
The beneficiary project shall be a greenfield project as defined under the new guidelines, sources said. Further, no second-hand, used, refurbished plant, machinery, equipment, utilities or R&D equipment shall be used to manufacture the eligible product. Also, expenditure on consumables and raw material used for manufacturing shall not be considered as investment. Only companies and limited liability partnerships (LLPs) registered in India will be eligible.
The PMA will implement the PLI scheme. It shall be responsible, among other things, for: receipt of applications, examination and processing of applications and issuing acknowledgements; weekly submission to the DoP, the status of applications received and processed under the scheme; making appropriate recommendations to the EC for approval of applications under the scheme; verification of committed investment and minimum threshold sales of manufactured goods for determining eligibility for disbursement of incentive.
The PMA will also examine the claims for disbursement of incentive and making appropriate recommendations to the EC, verify the reconciliation of disbursement claims with prescribed documents, compile the data regarding progress and performance of the scheme through quarterly review reports, and provide secretarial and other support to the TC for carrying out its responsibilities.
With an objective to boost domestic manufacturing, attract large investment in the medical device sector, the DoP has earmarked Rs3,420 crore for the PLI scheme till 2027-28.
