India approves Rs. 1.46 lakh crores PLI scheme; Rs. 15,000 cr for Pharma
By: ICN Bureau
Last updated : November 12, 2020 11:46 am
The PLI scheme is for enhancing India’s manufacturing capabilities and enhancing exports under Atmanirbhar Bharat campaign
The Union Cabinet chaired by the Prime Minister Narendra Modi has approved Rs. 145,980 crore to introduce the Production-Linked Incentive (PLI) Scheme in 10 key sectors.
The Pharmaceutical Drugs will get Rs. 15,000 crore over a five year period and PLI scheme will incentivise the global and domestic players to engage in high value production.
This is apart from Rs. 51,311 crore already approved previously under PLI scheme of which critical key products starting materials/Drug Intermediaries and active pharmaceutical ingredients was allocated Rs. 6,940 crore and manufacturing of medical device was allocated Rs. 3,420 crore.
The Indian pharmaceutical industry is the third largest in the world by volume and 14th largest in terms of value. It contributes 3.5% 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.
The PLI Scheme is for enhancing India’s manufacturing capabilities and enhancing exports under Atmanirbhar Bharat campaign. The PLI scheme will be implemented by the concerned ministries/departments and will be within the overall financial limits prescribed. The final proposals of PLI for individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Cabinet.
Savings, if any, from one PLI scheme of an approved sector can be utilized to fund that of another approved sector by the Empowered Group of Secretaries. Any new sector for PLI will require fresh approval of the Cabinet.
Break-up of Production-Linked Incentive (PLI) Scheme:
Sectors - Approved financial outlay over a five year period (in Rs. Cr)
Advance Chemistry/Cell (ACC) Battery - 18,100
Electronic/Technology Products - 5,000
Automobiles & Auto Components - 57,042
Pharmaceuticals Drugs - 15,000
Telecom & Networking Products - 12,195
Textile Products: MMF segment and technical textiles - 10,683
Food Products - 10,900
High Efficiency Solar PV Modules - 4,500
White Goods (ACs & LED) - 6,238
Speciality Steel - 6,322
Total - 145,980
The PLI scheme across these 10 key specific sectors will make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain.