Key Facts

• The approved outlay of the scheme is Rs 15000 crore.
• Operational guidelines for the Production Linked Incentive Scheme have been prepared and the scheme is now open to applications from the industry.
• Applications are invited in three groups based on the Global Manufacturing Revenue.
  • A maximum of 55 applicants will be selected under the scheme.
  • The applicants will be required to achieve minimum cumulative investment per year over a period of 5 years.
• The eligible products have been categorised into three categories.
  • Products covered under the scheme are formulations, bio-pharmaceuticals, active pharmaceutical ingredients, key starting material, drug intermediates, in-vitro diagnostic medical devices, etc.
  • Category-1 and Category-2 products attract 10% incentive.
  • Category-3 products attract 5% incentive.
• Selected manufacturers will be able to receive production linked incentives based on incremental sales of pharmaceutical products for a period of 6 years.
  • A selected participant will be able to get a maximum incentive of Rs 1000 crore, Rs 250 crore and Rs 50 crore respectively.
• An Empowered Group of Secretaries will undertake periodic reviews of the scheme to ensure its smooth implementation along with the other PLI schemes of the Govt. of India.
• Technical Committee will assist the department in all technical issues which arise during the implementation of the scheme.
• SIDBI, the Project management Agency selected for this scheme, will be responsible for implementation and will be the interface with the industry

SIDBI : Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990 under an Act of Indian Parliament. Acts as the Principal Financial Institution for Promotion,Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector.

Indian Pharmaceutical Sector

• India ranks 3rd worldwide for pharmaceutical production by volume and 14th by value.
  • India is the largest provider of generic drugs globally.
  • Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK.
  • Over 80% of the antiretroviral drugs used globally to combat AIDS are supplied by Indian pharmaceutical firms.
• Indian Economic Survey 2021, the domestic market is expected to grow 3x in the next decade.
• Foreign Direct Investment (FDI) policy in the pharmaceutical sector up to 100% under the automatic route for manufacturing of medical devices subject to certain conditions.

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Also Visit : Production Linked Incentive Scheme for Food Processing Industry (PLISFPI).