Production Linked Incentive Scheme For Pharmaceuticals (Ver. 2.0)
Table of Contents
Version 1.0 is Extended!
The Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of critical Key Starting Materials (KSMs)/Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India.
Production Linked Incentives of up to INR 6,940 crores have been approved.
A financial incentive will be given to eligible manufacturers of identified 41 eligible products which cover 53 APIs, for 6 years, committed investment, and sales made by the selected applicant for the eligible products.
The rates will vary for Fermentation based products and Chemically Synthesized products.
Round 1
Closed for Application
Round 2
Last Date for Application: 28 July 2021
Incentives
•Fermentation products:
-FY 2022-26: 20%
-FY 2026-27: 15%
-FY 2027-28: 5%
•Chemically synthesized products:
-FY 2021-27: 10%
Eligibility
•Support under the scheme shall be provided only to manufacturers of critical KSMs/DIs and APIs registered in India subject to committed investment and minimum annual production capacity.
The four segments into which the eligible KSMs/DIs/APIs products have been divided based on their criticality and import dependence namely:
•Key Fermentation based KSMs/DIs
•Niche Fermentation based KSMs/DIs/APIs
•Key Chemical Synthesis based KSMs/DIs
•Other Chemical Synthesis based KSMs/DIs/APIs
Eligibility for selection
- The project shall be a greenfield project as defined under these guidelines.
- The Net Worth of the Applicant (including that of Group Companies), as on the date of application, shall not be less than 30% of the total committed investment. The Applicant not meeting the said Net Worth criteria shall not be eligible.
- The proposed Domestic Value Addition (DVA) by the applicant shall be at least 90% in case of fermentation based product and at least 70% in case of chemical synthesis based product.
- The applicant should not have been declared as bankrupt or wilful defaulter or defaulter or reported as fraud by any bank or financial institution or non-banking financial company.
Eligibility for incentive
- The project shall be a greenfield project as defined under these guidelines.
- The Net Worth of the Applicant (including that of Group Companies), as on the date of application, shall not be less than 30% of the total committed investment. The Applicant not meeting the said Net Worth criteria shall not be eligible.
- The proposed Domestic Value Addition (DVA) by the applicant shall be at least 90% in case of fermentation based product and at least 70% in case of chemical synthesis based product.
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