Centre approves 16 applicants under PLI scheme in key starting materials, APIs
BusinessToday.In April 14, 2021
The chemicals and fertilisers ministry has approved 16 applicants under Production Linked Incentive (PLI) scheme for the promotion of domestic manufacturing of critical key starting materials and active pharmaceutical ingredients (APIs) in the country.
The setting up of 16 plants will lead to investment worth Rs 348.70 crore and over 3,042 jobs. Their commercial production will start on April 1, 2023.
Under Prime Minister Narendra Modi's Atma Nirbhar Bharat Abhiyan, the pharmaceuticals department had launched a PLI scheme to cut import dependence on critical bulk drugs.
The scheme is aimed at promoting domestic manufacturing by setting up greenfield plants with minimum domestic value addition in four different target segments -- two fermentation-based and two chemical synthesis based -- with a total outlay of Rs 6,940 core for 2020-21 to 2029-30.
In total, 215 applications were received for the 36 products spread across the 4 target segments.
"All the 215 applications have been considered and a total of 47 applications with committed investment of Rs 5,366.35 crore have been approved under the PLI scheme for APIs," a government statement said.
Setting up of these plants will make the country self-reliant to a large extent in respect of these bulk drugs. The disbursal of PLIs over the six years would be up to a maximum of about Rs 6,000 crore against the budgetary outlay of Rs 6,940 crore.
Under the PLI scheme for Promoting Domestic Manufacturing of Medical Devices, 14 applications have been approved with a committed investment of Rs 873.93 crore.
The Indian pharmaceutical industry is the 3rd largest in the world by volume, with a high market presence in the US and EU. But it is significantly dependent on the import of basic raw materials, viz, bulk drugs. In some specific bulk drugs, the import dependence is 80 to 100 per cent.