PLI scheme for bulk drugs and medical devices receives 243 applications
Production Linked Incentive (PLI) Scheme for bulk drugs and medical devices, which closed on 30 November 2020, received 215 and 28 applications from manufacturers of bulk drugs and medical devices respectively
Production Linked Incentive (PLI) Scheme
for bulk drugs and medical devices
, approved in March 2020 and notified in July 2020 with a total financial outlay of Rs 34.20 billion, has evoked a very positive response with 243 applications received from pharmaceutical and medical devices companies.
Under the PLI Scheme for bulk drugs, 215 applications were made by 83 pharmaceutical manufacturers
. Similarly, 28 applications made by 23 manufacturers have been received under the PLI Scheme for medical devices. The closing date of applications was November 30, 2020. IFCI Ltd is the Project Management Agency (PMA) for implementation of both the schemes.
The appraisal process of the applications has commenced from December 1, 2020 and a maximum of 136 applications under the PLI scheme for bulk drugs and a maximum of 28 applications under the PLI scheme for medical devices will be approved. The time duration for giving approval to the applicants is 90 days under the PLI scheme for bulk drugs and 60 days under the PLI scheme for medical devices. However, best efforts will be done by the PMA and the Department of Pharmaceuticals to give early approvals to the participants under the scheme.
Looking at the increasing imperative of drug security, support to domestic production capability in bulk drugs would ensure higher resilience of the Indian pharmaceutical industry to external shocks. The PLI scheme for medical devices will help meet the objective of product diversification and production of innovative and high value medical devices in India. These initiatives have the potential to contribute significantly to achieving higher objective of affordable healthcare in the country and globally on a sustained basis.
The PLI Schemes for bulk drugs and medical devices - along with electronics manufacturing industry - was approved by the Government on March 20, 2020. For bulk drugs & medical devices, the initial guidelines for implementation of both the schemes which were initially issued on July 27, 2020 were amended based on the feedback received from the industry. These revised guidelines were issued on October 29, 2020. Both the schemes have shown a very encouraging response from the pharmaceutical as well as the medical device industry.
In November 2020, as part of Aatmanirbhar Bharat 3.0 initiative
, the Government of India has extended the PLI Scheme to 10 new sectors with additional financial outlay of Rs 1460 billion over a 5-year period
to enhance India’s manufacturing capabilities and enhancing exports. The new sectors that are included for the scheme are advance chemistry cell (ACC) battery, electronic/technology products, automobiles & auto components, pharmaceutical drugs, telecom & networking products, textile products (man-made fibres and technical textiles), food products, high efficiency solar PV modules, white goods (ACs & LED), and speciality steel.
The Indian pharmaceutical industry is the third largest in the world by volume and 14th largest in terms of value. It contributes 3.5 per cent of the total drugs and medicines exported globally. India possesses the complete ecosystem for development and manufacturing of pharmaceuticals and a robust ecosystem of allied industries. Under PLI scheme 2.0, Rs 150 billion has been allocated for pharmaceutical industry to incentivise the global and domestic players to engage in high value production.