Government Allocates Rs 15,000 Crore for PLI Initiative to Enhance Pharmaceutical Production
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New Delhi, Dec 7 (NationPress) The Union government has sanctioned a budget of Rs 15,000 crore for the Production Linked Incentive (PLI) initiative within the pharmaceuticals sector, designed to enhance local manufacturing.
In a formal response to the Lok Sabha, Union Minister of State for Chemicals and Fertilizers Anupriya Patel stated that the government has implemented various strategies to promote local manufacturing in the pharmaceutical realm. These efforts encompass Bulk Drugs and Medical Devices, which will aid in diminishing import reliance, stimulate domestic production, and draw substantial investments.
Patel disclosed that the PLI initiative aimed at fostering domestic production of essential Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) in India (often referred to as the PLI scheme for Bulk Drugs) has received approval with a financial backing of Rs 6,940 crores.
The initiative, which will extend from FY 2022-2023 to FY 2028-29, will offer financial incentives for the production of designated products.
The PLI scheme for pharmaceuticals, with a funding allocation of Rs 15,000 crores for the duration of FY 2022-23 to FY 2027-28, “offers financial incentives to 55 selected beneficiaries for the manufacture of specified products across three categories for a span of six years,” Patel elaborated.
Under this initiative, Patel highlighted that high-value pharmaceutical products such as patented and off-patented drugs, biopharmaceuticals, complex generics, anti-cancer medications, auto-immune drugs, and orphan drugs will be produced.
Additionally, Rs 3,420 crore has been allocated for the PLI initiative focused on encouraging local manufacturing of medical devices from FY 2022-2023 to FY 2026-27.
This scheme provides incentives to selected firms at a rate of 5 percent on the incremental sales of medical devices manufactured in India, covering four target segments of the initiative, over a five-year period.
“This initiative facilitates the production of high-value medical devices such as linear accelerators, MRI machines, CT scans, mammography machines, C-arms, and ultrasound machines, which were previously imported into the country,” Patel remarked.
The initiative permits investments in new manufacturing equipment, research and development, product registration, and infrastructure.
“By October 2024, a total investment of Rs 33,534 crore has been realized under this scheme, exceeding the initial projected investment of Rs 17,275 crore. An incentive totaling Rs 3,215 crore has been distributed under the initiative to 45 companies,” stated the Minister of State.
