Production Linked Incentive (PLI) Scheme For Pharmaceuticals

Quick facts

• Type: Central Sector Scheme
• Purpose: To enhance India's manufacturing capabilities in the pharmaceutical sector
• Project Management Agency: Small Industries Development Bank of India (SIDBI)
• Tenure: FY 2020-21 to FY 2028-29

Objectives

• To create global champions out of India and thereby penetrate the global value chains.

Salient Features

Applicant: Both MSMEs as well as Non-MSMEs are covered under: Proprietary Firm  Partnership Firm  Limited Liability Partnership (LLP) Company registered in India Product categories Category 1:Biopharmaceuticals; Complex generic drugs; Patented drugs; Orphan drugs; etc. Category 2: Active Pharmaceutical Ingredients (APIs)/ Key Starting materials (KSM)/ Drug Intermediates (DIs) except those  covered under PLI scheme for APIs/KSMs and DIs Category 3: Drugs not covered under Category 1 and Category 2 including drugs not manufactured in India 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:  Category 1 and 2: 10% initially, and to be successively reduced to 6% Category 3: 5% initially, and to be successively reduced to 3%