The Production Linked Incentive (PLI) Scheme for Bulk Drugs and Medical Devices has shown an encouraging response and has received a total of 275 proposals.

The PLI Scheme for Bulk Drugs has received 247 registrations across all four categories of products out of which a maximum of 136 applicants will be selected under the Scheme. Similarly, the PLI Scheme for Medical Devices has received 28 registrations across all four target segments out of which a maximum of 28 applicants will be selected under the Scheme.

IFCI Ltd. is the Project Management Agency for the Schemes and all the applications are being received on its online portal. The appraisal and selection process of applicants will be completed by the end of February, 2021.

The objective of Production Linked Incentive (PLI) scheme is for promotion of domestic manufacturing of critical Key Starting Materials (KSMs)/drug intermediates and Active Pharmaceutical Ingredients (APIs) in India is to promote domestic manufacturing of 41 identified bulk drugs to address their high import dependence. The total outlay of the scheme is Rs. 6,940 crores.

The scheme duration is from 2020-21 to 2029-30. Under the scheme, financial incentive will be given for six years to eligible manufacturers of 41 bulk drugs on their incremental sales over the base year. For fermentation based eligible products, rate of incentive for the first four years (2023-2024 to 2026-2027) would be 20%, for fifth year (2027-28) would be 15% and for sixth year (2028-2029) would be 5%.

For chemically synthesized eligible products, the rate of incentive for the entire six years (2022-2023 to 2027-2028) would be 10%. With the successful implementation of this Scheme it is expected that India would be well positioned as a global hub for manufacturing of identified bulk drugs along with the final drug formulations.