This scheme offers financial incentives to selected manufacturers of pharmaceutical goods and in-vitro diagnostic medical devices, based Read More... on their increased sales over a base year. Read less
Details
India is boosting its pharmaceutical manufacturing sector with the Production Linked Incentive (PLI) Scheme. This initiative by the Ministry of Chemicals and Fertilizers aims to encourage more investment and production in the industry, leading to a wider variety of high-value pharmaceutical products.
The PLI Scheme for Pharmaceuticals provides financial rewards to companies that increase their sales of specific pharmaceutical goods and in-vitro diagnostic medical devices. These incentives are calculated on the extra sales achieved compared to a base year.
The scheme is designed for manufacturers of pharmaceutical products registered in India. Different categories of manufacturers, including large companies and MSMEs, can apply based on their existing revenue and investment capacity.
By incentivizing increased production and sales, the scheme aims to strengthen India's position as a global manufacturing hub for pharmaceuticals. It also promotes the development and production of diverse, high-value medical products within the country.
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To be considered for the scheme, applicants must meet certain common criteria and group-specific requirements.
Applications for this scheme are handled online. Here’s a general idea of the process:
For the most current application link and detailed instructions, please refer to the official website of the Department of Pharmaceuticals.
To apply and claim benefits under the scheme, you will likely need the following documents:
For precise document formats and submission guidelines, please consult the official notifications and portal for the PLI Scheme for Pharmaceuticals.
What is the minimum Global Manufacturing Revenue needed to be considered for Group A under this scheme?
To be eligible for Group A, your company's Global Manufacturing Revenue for pharmaceutical goods or in-vitro diagnostic medical devices must be at least ₹50,00,00,00,000/- (₹5,000 crores) in the Financial Year 2019-20.
Can the cost of purchasing land for a new manufacturing unit be included in the scheme's eligible investment calculation?
No, expenses related to acquiring land for the project or manufacturing unit are not counted as eligible investment under this scheme.
How much of a sales increase is required each year to continue receiving incentives after the first year?
From the Financial Year 2023-24 onwards, applicants must achieve a 7% growth in sales over the previous financial year to be eligible for incentives.
What is the base financial year used to calculate sales growth for the incentive program?
The scheme uses the Financial Year 2019-20 as the base year for calculating incremental sales and for determining eligibility criteria.
After being selected, how long do applicants have to submit the required bank guarantee and undertaking?
Selected applicants must provide the bank guarantee and an undertaking within two weeks from the date they receive the official approval letter.