Production Linked Incentive Scheme For Pharmaceuticals (Ver. 2.0)

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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