Government issues Operational guidelines for Production Linked Incentive Scheme of Pharmaceuticals Applications invited from the industry

GG News Bureau
New Delhi, 1st June. With an aim to enhance India’s manufacturing capabilities by increasing investment and production in the sector and to contribute to product diversification to high-value goods in the pharmaceutical sector, the Department of Pharmaceuticals notified the ‘Production Linked Incentive (PLI) Scheme for Pharmaceuticals’ vide Gazette Notification No.31026/60/2020-Policy-DoP dated 3rd March 2021. The approved outlay of the scheme is Rs 15000 crore. The scheme envisages creating global champions out of India who has the potential to grow and scale using cutting edge technology and thereby penetrate the global value chains. Based on a series of consultations with the pharmaceutical industry and stakeholders in the Government, the operational guidelines for the scheme have been prepared and issued on 1st June. The scheme is now open to applications from the industry.
The applications are invited in three groups based on the Global Manufacturing Revenue of FY 2019-20 of the applicants. A special carve-out for MSMEs has been kept under the scheme. All the applications will be submitted through an online portal maintained by SIDBI, the Project Management Agency for the scheme. The application can be made on the online portal, the URL of which is The application window is for 60 days starting from 2nd June 2021 to 31st July 2021 (Both dates inclusive)
The eligible products have been categorized into three categories. The products covered under the scheme are formulations, biopharmaceuticals, active pharmaceutical ingredients, key starting material, drug intermediates, in-vitro diagnostic medical devices, etc. The category-1 and category-2 products attract 10% incentive and category-3 products attract 5% incentive on the incremental sales. Incremental sales of a product mean sales of that product in a year over and above the sales of that product in FY 2019-2020.
Based on clearly laid out selection criteria given in the guidelines, a maximum of 55 applicants will be selected under the scheme. An applicant, through a single application, can apply for more than one product and the products applied by an applicant can be in any of the three categories. The applicants will be required to achieve minimum cumulative investment per year over a period of 5 years as prescribed under the scheme. The investment could be under new plant and machinery, equipment and associated utilities, research and development, transfer of technology, product registration and expenditure incurred on the building where plant and machinery are installed. The investment made on or after April 01, 2020, will be considered as eligible investment under the scheme.

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