The production-linked incentive (PLI) schemes and development of dedicated industrial parks announced for the promotion of indigenous manufacturing of bulk drugs and medical devices will attract Rs 77,000 crore worth of investments and generate employment for 2.55 lakh people, estimates the Ministry of Chemicals and Fertilisers.
In a presentation made at the official launch of these schemes, the department of pharmaceuticals, Ministry of Chemicals and Fertilisers points out that the schemes when operationalised will result in import substitution and drug security for the country. While PLI scheme for 53 specific bulk drugs is expected to attract investment worth Rs 8,500 crore, it will provide direct employment to 25,500 persons, the department notes. In addition, the bulk drug parks will generate 72,000 jobs through an investment of Rs 24,000 during the scheme period, they point out.
Similarly, the ministry says the PLI for medical device scheme will see Rs 5,400 crore come in as investment and provide direct jobs to at least 15,000 people. In the case of medical device park, the ministry is hoping to see Rs 40,000 as investments and 1,40,000 as new job opportunities. In all cases, sector development is expected to boost ancillary industry and provide indirect employment too.
The PLI scheme for promotion of domestic manufacturing of critical key starting materials, drug intermediates, active pharmaceutical ingredients was notified by the government on July 21. The incentive will be provided on the basis of investment in new plant, machinery, equipment and associated utilities to manufacture 53 critical pharmaceutical raw materials or medical devices that fall into four specific target segments.
In addition, three bulk drug parks and four medical devices parks with assistance for common infrastructure facilities are also being planned. The Central government will provide a grant-in-aid of Rs 1,000 crore each to 3 bulk drug parks and Rs 100 crore each to four medical device parks developed by the states. The evaluation criteria for selection of states have also been finalised.