PLI SCHEME FOR PROMOTION OF DOMESTIC MANUFACTURING OF CRITICAL KEY STARTING MATERIALS (KSMS), (DRUG INTERMEDIATES) DIS AND (ACTIVE PHARMACEUTICAL INGREDIENTS) APIS

Quick facts

• Type: Central Sector Scheme
• Purpose: To attain self-reliance and reduce import dependence of critical KSMs/DIs/APIs 
• Project Management Agency: Industrial Finance Corporation of India (IFCI) Ltd 
• Tenure: FY 2020-21 to FY 2029-30 

Objectives

• To boost domestic manufacturing of identified KSMs, DIs and APIs by attracting large investments in the sector and reducing India's dependence on import of key APIs. 

Salient Features

Bulk Drug or API: It is the chemical molecule in a pharmaceutical product that lends the product the claimed therapeutic effect. Example, penicillin. India imports around 70% of total imports of bulk drugs from China. Scope: Setting up of green field plants with minimum domestic value addition of 90% in four different target Segments. Eligible Investment: Expenditure incurred on new plant, machinery, equipment; Research and Development (R&D); Transfer of Technology (ToT); Product registration; Construction of building.  Product categories: 41 products in four categories which cover all the identified 53 APIs.  Financial incentive It will be provided on the incremental sales over Base Year (FY 2019-20).  Tenure of incentive payment: Maximum 6 years Rate of incentive:  For fermentation based products: 20% and initially, and to be successively reduced 5%. For chemical synthesis based products: 10%.