What kind of financial incentives are offered under this scheme?

Manufacturers receive financial incentives on incremental sales of 41 identified products for a period of 6 years. The incentive rates vary from 5% to 20% depending on the product segment (Fermentation-based or Chemical Synthesis-based) and the financial year.

Who is eligible to apply for this scheme?

The scheme is open to manufacturers of critical KSMs/DIs and APIs that are registered in India. Eligibility is specifically for greenfield projects and is subject to meeting certain threshold investment criteria, which vary by product segment.

What is the total financial outlay and tenure of the scheme?

The scheme has a total financial outlay of ₹6,940 crore and runs from FY 2020-21 to FY 2029-30, with FY 2019-20 serving as the base year for calculations.

How does one apply for the PLI Scheme for Bulk Drugs?

Eligible applicants must apply online through the official portal. An application fee of ₹1,00,000 for specific products or ₹50,000 for other eligible products is required and must be paid electronically via NEFT/RTGS to the designated IFCI bank account.

What is meant by a 'greenfield project' in the context of this scheme?

A greenfield project refers to a new manufacturing facility or unit built from scratch, rather than upgrading or expanding an existing plant. The scheme specifically supports these new investments in the pharmaceutical sector.

Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India

The "Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India" is an initiative by the Department of Pharmaceuticals, Ministry Of Chemicals And Fertilizers, Government of India. It aims to significantly boost domestic manufacturing capabilities for identified Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) by providing financial incentives on their incremental sales. The scheme is specifically designed to reduce India's import dependence for these 41 critical pharmaceutical products.

It is exclusively applicable to greenfield projects, thereby encouraging substantial new investments in the pharmaceutical manufacturing sector. With a total financial outlay of ₹6,940 crore, the scheme's tenure spans from FY 2020-21 to FY 2029-30, utilizing Financial Year 2019-20 as the base year for performance calculations. The Industrial Finance Corporation of India (IFCI) serves as the designated Project Management Agency (PMA), overseeing the implementation and assessment of the scheme.

Applications will undergo a rigorous evaluation by the Project Management Agency (IFCI) based on the details furnished by the manufacturers. This assessment includes verifying the threshold investment committed to greenfield projects and evaluating projected incremental sales of the identified KSMs/DIs/APIs. Statutory Auditor certificates will be a critical part of the documentation reviewed to ensure compliance with scheme criteria and investment milestones before incentives are approved and disbursed.

The scheme provides significant financial incentives on the incremental sales of 41 identified Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) for a period of 6 years. For Fermentation-Based Products, incentives are 20% from FY 2023-24 to FY 2026-27, reducing to 15% in FY 2027-28, and 5% in FY 2028-29. For Chemical Synthesis-Based Products, a uniform 10% incentive is offered from FY 2022-23 to FY 2027-28. These incentives are applicable across a broad range of 41 products, covering 53 critical APIs, aimed at enhancing India's self-reliance in pharmaceutical manufacturing.

Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India

Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India

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