The Production Linked Incentive (PLI) Scheme will promote Pharmaceutical manufacturing in India. In order to incentivize the global and domestic players to enhance investment and production in these product categories, a well-designed and suitably targeted intervention is required to incentivize specific high value goods such as biopharmaceuticals, complex generic drugs, patented drugs or drugs nearing patent expiry, cell based or gene therapy drugs. The objective of the scheme is to enhance India’s manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high value goods in the pharmaceutical sector. One of the further objectives of the scheme is to create global champions out of India who have the potential to grow in size and scale using cutting edge technology and thereby penetrate the global value chains.
Applicant for the purpose of the Scheme is a Company/ LLP/ Partneship firm/ proprietorship firm registered in India, proposing to manufacture eligible pharmaceutical products covered under the scheme as defined in the guidelines, and making an application seeking approval under the Scheme. The Applicant can set up new or use existing manufacturing facility(ies) to manufacture eligible pharmaceutical products. The aforesaid manufacturing can be carried out at one or more locations in India, which will however be prior intimated to Department of Pharmaceuticals (DoP). The Applicants whose accounts are declared as Non-Performing Asset (NPA) as per RBI guidelines or wilful defaulter or reported as fraud by any bank, financial institution or non-banking financial company etc. would be considered as ineligible. Further, there should not be any insolvency proceedings admitted against the Applicant in the National Company Law Tribunal (NCLT) etc.
The Eligible Products under the Scheme consist of Specified Pharmaceuticals Products which will be allowed to be manufactured under this PLI Scheme. The list of products has been classified under 3 categories mentioned below:
Applicants have to satisfy the following criteria to be eligible under the PLI Scheme for Pharmaceuticals:
Applicant can be considered ineligible for the PLI Scheme for Pharmaceuticals Products manufacturing in India under the following conditions:
The Scheme will be implemented within the overall financial limits of Rs 15000 Crores only (Rupees Fifteen Thousand Crore only) over a period of 6 years.
The scheme will be effective from 1st April 2021. The investment will be permitted to be made in four years, subject to qualifying incremental annual thresholds, the support under the Scheme shall be provided for a period of six (6) years.
Queries received from prospective applicants after the release of Operational Guidelines have been collated and replies have been uploaded in the Scheme Instructions/ Circulars section. Scheme Instructions/ Circulars Section