The Ministry of Chemicals and Fertilizers vide its press release dated 17th December 2021 has highlighted various schemes to attract investments in pharmaceutical and medical device sector. For Pharmaceuticals investment in greenfield sector upto 100% is permitted under automatic route while Investment in brownfield sector upto 74% is permitted under automatic route. For medical device sector, investment is permitted upto 100% under automatic route.
The following are the details of the schemes:
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: The objective of the Scheme is to attain self-reliance and reduce import dependence in critical Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIS). The tenure of the sub-scheme is from financial year 2020-21 to 2029-30.
Production Linked Incentive Scheme for Pharmaceuticals: The scheme provides for financial incentives to manufacturers for drug formulations, bulk drugs and IVDs in three categories.
PLI Scheme for promoting Domestic Manufacturing of Medical Devices: The Scheme intends to boost domestic manufacturing and attract large investments in the Medical Devices Sector. The financial incentive is to be given to selected companies on incremental sales of medical devices manufactured in India and covered under the Target segments of the scheme, for a period of five (5) years. The tenure of the scheme is from FY 2020-21 to FY 2027-28 with total financial outlay of Rs.3,420 crore.
Scheme for Promotion of Bulk Drug Parks: The scheme provides for grant-in-aid to three (03) Bulk Drug Parks for creation of Common Infrastructure Facilities (CIF) with a maximum limit of Rs.1000 crore per park or 70% of the project cost of CIF, whichever is less.
“Promotion of Medical Devices Parks”: Under this Scheme a onetime grant-in-aid will be provided for creation of common infrastructure facilities in selected Medical Device Park proposed by a State Government. The tenure of the scheme is from FY 2020-2021 to FY 2024- 2025.
