The Ministry of chemicals and fertilizers on 3rd March 2021 has launched the Production Linked Incentive Scheme for APIs, KSMs and Dis.
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.
The manufacturers of pharmaceutical goods registered in India will be grouped based on their Global Manufacturing Revenue (GMR) to ensure wider applicability of the scheme across the pharmaceutical industry and at the same time meet the objectives of the scheme.
The total quantum of incentive (inclusive of administrative expenditure) under the scheme is about Rs 15,000 crore and the Financial Year 2019-20 shall be treated as the base year for computation of incremental sales of manufactured goods .
Further, the duration of the scheme will be from FY 2020-21 to FY 2028- 29. This will include the period for processing of applications (FY 2020-21), optional gestation period of one year (FY 2021-22), incentive for 6 years and FY 2028-29 for disbursal of incentive for sales of FY 2027-28.
