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Govt says 55 manufacturers to benefit under PLI scheme for pharma sector

Govt says 55 manufacturers to benefit under PLI scheme for pharma sector

The PLI scheme in pharma aims to enhance India's manufacturing capabilities by increasing investment and production, and boosting exports in 10 sectors.

The incentives will be paid for a maximum of 6 years for each participant, depending upon the threshold investments and sales criteria they'll achieve. Photo: Reuters The incentives will be paid for a maximum of 6 years for each participant, depending upon the threshold investments and sales criteria they'll achieve. Photo: Reuters

The Ministry of Chemicals and Fertilisers on Friday said that a total of 55 companies have been selected for the PLI scheme in the pharma sector, which was approved on February 24, 2021. The financial outlay under the PLI scheme is Rs 15,000 crore, for which SIDBI is the Project Management Agency.

The Cabinet approval, the ministry said, is in line with the strategy of "Atmanirbhar Bharat" to enhance India's manufacturing capabilities by increasing investment and production and boosting exports in 10 sectors.

The scheme also aims to contribute to product diversification to high-value goods in the pharma sector.

"One of the further objectives of the scheme is to create global champions out of India who have the potential to grow in size and scale using cutting edge technology and thereby penetrate the global value
chains," the ministry said.

The guidelines for the scheme inviting applications from the pharma industry were issued on 01.06.2021 by the Pharmaceuticals Department after talks with industry, related departments and NITI Aayog.

Benefits of the PLI scheme

The PLI scheme will provide financial incentives on the incremental sales (over the base year) of pharma goods and in-vitro diagnostic medical devices to selected applicants, based on pre-defined selection criteria.

The incentives will be paid for a maximum of 6 years for each participant, depending upon the threshold investments and sales criteria they'll achieve.

The ministry said it received a total of 278 applications, of which 55 applicants were to be selected. The scheme covers three different product categories for which applicants have applied.

Category one comprises segments like biopharmaceuticals; complex generic drugs; patented drugs or drugs nearing patent expiry; cell-based or gene therapy drugs; orphan drugs; special empty capsules like HPMC, pullulan, enteric etc; complex excipients; and phytopharmaceuticals.

Category two comprises active pharmaceutical ingredients/key starting materials/drug intermediates (except the APIs/key starting materials/drug intermediates covered under the earlier PLI scheme for APIs/KSMs and DIs being implemented by the department).

Category three comprises repurposed drugs; autoimmune drugs, anti-cancer drugs, anti-diabetic drugs, anti-infective drugs, cardiovascular drugs, psychotropic drugs and anti-retroviral drugs; in vitro diagnostic devices; other drugs not manufactured in India.

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