Deen Dayal Upadhyaya Swawlamban Yojana 2026

This scheme is designed to boost the manufacturing of medical devices within India and attract significant investment Read More... by offering financial incentives to companies. Read less

Details

The Indian government is actively working to strengthen its healthcare sector by encouraging local production of essential medical equipment. The Production Linked Incentive (PLI) Scheme for Medical Devices is a key initiative under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, aimed at achieving this goal.

What Is This Scheme?

This scheme provides financial incentives to companies that are manufacturing medical devices in India. The idea is to not only increase domestic production but also to attract substantial investments into this crucial sector. Companies get incentives based on their increased sales compared to a base year, provided they meet certain investment thresholds.

Who Can Benefit From This Scheme?

The scheme is primarily for companies that are setting up new manufacturing facilities (greenfield projects) in India for specific categories of medical devices. These companies must be registered in India, either as a company or a Limited Liability Partnership (LLP). They need to meet defined investment and sales targets to be eligible for the incentives.

Why This Scheme Is Important

By promoting domestic manufacturing, the PLI scheme for medical devices aims to reduce India's reliance on imports, ensure a stable supply of critical healthcare products, and create employment opportunities. It supports the 'Make in India' initiative and positions the country as a global manufacturing hub for medical devices.

Objective

This scheme is designed to boost the manufacturing of medical devices within India and attract significant investment by offering financial incentives to companies.

Benefits

The applicant receives a 40% front-ended capital investment subsidy to eligible beneficiaries for setting up small and medium enterprises.
The applicant can avail of a loan ranging from ₹10,00,000/- up to ₹50,00,000/- for the project cost, excluding the cost of land and building.
The applicant (specifically women entrepreneurs) is eligible for an additional 5% interest subsidy annually, provided the entrepreneur does not become a Non-Performing Asset (NPA).
The applicant is required to contribute at least 30% of the project cost as their own contribution.
The applicant receives a loan component amounting to 30% of the project cost.

Sources and references

Official Website

Eligibility Criteria

To apply for this scheme, your company or LLP must meet the following conditions:

You must be a company or Limited Liability Partnership (LLP) registered in India.
You must be actively involved in manufacturing medical devices that fall under the scheme's target segments.
The project must be a greenfield project established in India.
You need to meet specific minimum investment and incremental sales targets.
All other conditions laid out for receiving incentives must be fulfilled.

Threshold Investment & Sales Requirements:

Over a period of 3 years, you must achieve:

Minimum Cumulative Investment: ₹180 Crore. This includes a minimum of ₹60 Crore in Year 1, ₹120 Crore by Year 2, and ₹180 Crore by Year 3.
Minimum Incremental Sales: Year 1: ₹120 Crore; Year 2: ₹240 Crore; Year 3: ₹360 Crore; Year 4: ₹460 Crore; Year 5: ₹560 Crore.

Key Target Segments:

The scheme covers manufacturing in these four specific segments of medical devices:

Target Segment 1: Cancer care / Radiotherapy medical devices.
Target Segment 2: Radiology & Imaging medical devices (including X-ray, MRI, CT scans, etc., and nuclear imaging devices).
Target Segment 3: Anaesthetics & Cardio-Respiratory medical devices. This also includes oxygen concentrators, cardio-respiratory catheters, and renal care medical devices.
Target Segment 4: All implants, such as implantable electronic devices like cochlear implants and pacemakers.

Note: Critical components that form a major part of a finished medical device and have their own HS code are also considered within their respective target segments. Examples include Rotating Anode Tubes, MRI Magnets, and Flat Panel Detectors.

Additional Conditions:

Applications must be submitted within 120 days from the opening of the application window.
Being eligible for this scheme does not prevent you from applying for or benefiting from other government schemes.

How To Apply

The scheme is managed by a Project Management Agency (PMA), which is the Industrial Finance Corporation of India (IFCI). Companies interested in applying should follow these steps:

Ensure your proposed project falls under the eligible 'greenfield' category and is for one of the specified medical device target segments.
Check if you meet all the general eligibility criteria, including being an Indian-registered company or LLP, and if you can commit to the required investment and sales targets.
Prepare all the necessary documents as listed below.
Submit a complete application form within the designated application window of 120 days.
Applications will be evaluated by the Project Management Agency (PMA) and potentially an Empowered Committee.
Incentives are disbursed after claims are verified and approved.

For detailed application procedures and timelines, please refer to the official notifications from the Department of Pharmaceuticals.

Documents Required

When applying for the Production Linked Incentive Scheme for Medical Devices, you will typically need to submit the following documents:

Certificate of Incorporation for your company.
Detailed information about your proposed greenfield project.
Proof of investment plans and evidence of investment made.
Records of incremental sales, duly certified by a Statutory Auditor.
A certificate from your auditor.
Your company's financial statements.
Any other supporting documents requested by the Department of Pharmaceuticals.

FAQ’s

What is the main goal of the PLI Scheme for Medical Devices?

The primary aim is to boost the manufacturing of medical devices right here in India and attract significant financial investment into this sector.

Can a company apply for this scheme if they already have other government benefits?

Absolutely! Your eligibility for this PLI scheme doesn't stop you from receiving benefits from other government initiatives.

What kind of new manufacturing projects are eligible for this scheme?

The scheme is specifically for 'greenfield' projects, meaning new manufacturing facilities being set up from scratch in India.

How long does the scheme provide incentives for?

The scheme is designed to provide incentives for a period of 5 years. The incentive rate is 5% on incremental sales for each of these years.

What's the minimum investment needed to qualify for the scheme?

Companies need to make a cumulative investment of at least ₹180 Crore over the first three years of the scheme.

Which types of medical devices are covered by this scheme?

The scheme covers four main categories: cancer care/radiotherapy devices, radiology & imaging devices, anaesthetics & cardio-respiratory devices (including oxygen concentrators), and all types of implants.

Who is responsible for running this PLI scheme?

The scheme is managed by the Department of Pharmaceuticals, which is part of the Ministry of Chemicals and Fertilizers. The Industrial Finance Corporation of India (IFCI) acts as the Project Management Agency.

What is the incentive amount offered under the scheme?

The scheme offers a financial incentive of 5% calculated on the increase in sales of manufactured goods compared to the base year.

When was the base year for calculating the increased sales?

The base year for calculating incremental sales is the financial year 2019-20.

Are there any deadlines for submitting applications?

Yes, you must submit your application within 120 days from the date the application window opens.

Who can apply for this scheme?

Any company or Limited Liability Partnership (LLP) that is registered in India and plans to manufacture eligible medical devices in a new greenfield project can apply.