The Ministry of Chemical and Fertilizers on 26th November 2021 has notified the Production Linked Incentive (PLI) scheme for the Pharmaceutical Sector. The objective of the scheme is to enhance India’s manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high value goods in the pharmaceutical 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 scheme will provide financial incentives on the incremental sales (over Base Year) of pharmaceutical goods and in-vitro diagnostic medical devices to selected applicants based on pre-defined selection criteria. The incentives will be paid for a maximum period of 6 years for each participant depending upon the threshold investments and sales criteria to be achieved by the applicant.
A Technical Committee comprising of experts is assisting the Department with respect to the technical aspects of the scheme. SIDBI has put in place a digital mechanism for business processes being followed under the scheme. A robust monitoring framework will also be put in place to track the progress of the scheme.