PLI Scheme on Pharmaceuticals

The PLI Scheme for Pharmaceuticals is based on the strategy of “Atmanirbhar Bharat- Strategies for enhancing India’s manufacturing capabilities and enhancing exports in ten sectors”, which had been approved by the Union Cabinet on 24.02.2021.
The objective of the Production linked incentive scheme is to enhance India’s manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high-value goods in the pharmaceutical sector.
One of the further objectives of the Production linked incentive scheme is to create global champions out of India who have the potential to grow in size and scale using cutting-edge technology and thereby penetrate the global value chains.
The production-linked incentive scheme will provide financial incentives on the incremental sales (over 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 6 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 Rs 15,000 crore.
SIDBI is the Project Management Agency for the Scheme.
The applications were invited in three different categories of applicants to ensure fair competition and broad coverage amongst the industry players. The categories were based on the size of the applicant as determined by the global manufacturing revenues from pharmaceutical manufacturing.
The Production linked incentive scheme covers three different product categories for which applicants have applied under the scheme. These products are expected to give an impetus to innovation, R&D and widening of the product profile of the India Pharmaceutical industry.

Category 1:

Biopharmaceuticals; Complex generic drugs; Patented drugs or drugs nearing patent expiry; Cell-based or gene therapy drugs; Orphan drugs; Special empty capsules like HPMC, Pullulan, enteric, etc.; Complex excipients; Phyto-pharmaceuticals.

Category 2:

Active Pharmaceutical Ingredients / Key Starting materials / Drug Intermediates (except the Active Pharmaceutical Ingredients / Key Starting materials / Drug Intermediates covered under the earlier PLI scheme for APIs/KSMs and DIs being implemented by the Department)

Category 3 (Drugs not covered under Category 1 and Category 2):

Repurposed drugs; Autoimmune drugs, anti-cancer drugs, anti-diabetic drugs, anti-infective drugs, cardiovascular drugs, psychotropic drugs and anti-retroviral drugs; In vitro diagnostic devices; Other drugs not manufactured in India.

Other Production Linked Incentive (PLI) Schemes in India

Source: PIB

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