New Delhi: The Union government has approved a financial outlay of Rs 15,000 crore for the Production Linked Incentive (PLI) scheme for pharmaceuticals, aimed at boosting domestic manufacturing.
In a written reply to Lok Sabha, Union Minister of State for Chemicals and Fertilizers Anupriya Patel said the government has taken several measures to encourage domestic manufacturing in the pharmaceutical sector. This includes Bulk Drugs and Medical Devices which will help reduce import dependence, boost domestic manufacturing, and attract large investments.
Patel informed that the PLI scheme for the promotion of domestic manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India (also known as the PLI scheme for Bulk Drugs) has been approved with a financial outlay of Rs. 6,940 crores.
The scheme, which will provide financial incentives for manufacturing notified products, will be carried out from FY 2022-2023 to FY 2028-29.
The PLI scheme for pharmaceuticals, with a financial outlay of Rs. 15,000 crores, for the FY 2022-23 to FY 2027-28 tenure “provides for a financial incentive to 55 selected applicants for manufacturing of identified products under three categories for a period of six years”, Patel said.
Under this scheme, Patel noted that high-value pharmaceutical products such as patented/off-patented drugs, biopharmaceuticals, complex generics, anti-cancer drugs, auto-immune drugs, orphan drugs, etc. are manufactured.
Another Rs. 3,420 crore has been assigned for the PLI scheme for promoting domestic manufacturing of medical devices from FY 2022-2023 to FY 2026-27.
It provides an incentive to selected companies at the rate of 5 per cent on incremental sales of medical devices manufactured in India and covered under the four target segments of the scheme, for five years.
“Under this scheme, high-value medical devices such as linear accelerators, MRI machines, CT-scans, mammograms, C-arms, ultrasound machines, etc are manufactured, which were previously imported into the country,” Patel said.
The scheme allows investment in new plant and machinery, R&D, product registration, and building.
“As of October 2024, a total investment of Rs 33,534 crore has been realised under the scheme and has surpassed the original projected investment of Rs 17,275 crore. An incentive amount of Rs.3,215 crore has been released under the scheme to 45 companies,” the MoS said.
(IANS)
