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Incentive Outlay & Eligibility Threshold

Quantum of Incentive

The total quantum of incentive (inclusive of administrative expenditure) under the scheme is about Rs 15,000 crore. The incentive allocation among the Target Groups is as follows-

  • a. Group A: Rs 11,000 crore.
  • b. Group B: Rs 2,250 crore.
  • c. Group C: Rs 1,750 crore.

Eligibility for incentive

The selected participants in the scheme will be eligible for incentives on incremental sales of pharmaceutical goods based on yearly threshold criteria of minimum cumulative investment and minimum percentage growth in sales as mentioned below-

Group of Applicants Minimum Cumulative Investment per Applicant (Rs. Crore) Minimum Percentage Growth in Sales (Year on Year)
Group A Rs. 1000 cr. over 5 years For the purpose of determining eligibility of incentive for first year i.e. FY 2022-23, the threshold sales in FY 2022-23 for eligible products has to be greater than Rs. 50 crore in case of a Group A participant, greater than Rs.10 crore in case of a Group B participant, greater than Rs.1 crore in case of a Group C participant and greater than Rs. 50 Lakh in case of a Group C MSME participant.

For subsequent financial years i.e. from FY 2023-24 onwards, the threshold sales shall be computed at 7% growth over actual sales of the approved eligible product of the previous financial year.
FY 2021-22: 200
FY 2022-23: 400
FY 2023-24: 600
FY 2024-25: 800
FY 2025-26: 1000
Group B Rs. 250 cr. over 5 years
FY 2021-22: 50
FY 2022-23: 100
FY 2023-24: 150
FY 2024-25: 200
FY 2025-26: 250
Group C Rs. 50 cr. over 5 years
FY 2021-22: 10
FY 2022-23: 20
FY 2023-24: 30
FY 2024-25: 40
FY 2025-26: 50
Group C MSME Committed investment (CI) over 5 years
FY 2021-22: 20% of CI
FY 2022-23: 40% of CI
FY 2023-24: 60% of CI
FY 2024-25: 80% of CI
FY 2025-26: 100% of CI