Deen Dayal Upadhyaya Swawlamban Yojana 2026

This scheme aims to boost India's medical device sector by encouraging local manufacturing and attracting significant investments, Read More... offering financial incentives for increased production. Read less

Details

India's healthcare sector is set to get a major boost with the Production Linked Incentive (PLI) Scheme designed to promote the domestic manufacturing of medical devices. This initiative by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, is a game-changer for companies looking to scale up their operations in India.

What Is This Scheme?

The PLI Scheme for Medical Devices is a financial incentive program. It aims to make India a global hub for medical device manufacturing. The government offers incentives to companies that increase their sales of manufactured medical devices in India. It's all about encouraging big investments and making sure we produce more high-quality medical equipment right here at home.

Who Can Benefit From This Scheme?

Companies registered in India, including Limited Liability Partnerships (LLPs), can apply if they are manufacturing specific types of medical devices. The scheme specifically targets greenfield projects, meaning new manufacturing facilities, and requires applicants to meet certain investment and sales targets.

Why This Scheme Is Important

This scheme is crucial for strengthening India's self-reliance in the medical device sector. By incentivizing domestic production, it aims to reduce import dependency, create jobs, and foster innovation. It's a strategic move to ensure a steady supply of essential medical equipment and to position India as a competitive player in the global medical device market.

Objective

This scheme aims to boost India's medical device sector by encouraging local manufacturing and attracting significant investments, offering financial incentives for increased production.

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

You must be a company registered in India or a Limited Liability Partnership (LLP).
You must be manufacturing medical devices that fall under the scheme's target segments.
You need to establish a new (greenfield) manufacturing project in India.
You must meet the specified minimum investment and incremental sales targets.
You must comply with all the conditions set for receiving the incentives.

Threshold Conditions:

Minimum Investment: Achieve a cumulative investment of at least ₹180 Crore over a period of three years. The yearly targets are ₹60 Crore in Year 1, ₹120 Crore in Year 2, and ₹180 Crore by Year 3.
Incremental Sales: Achieve specific incremental sales targets each year, starting from ₹120 Crore in Year 1, ₹240 Crore in Year 2, ₹360 Crore in Year 3, ₹460 Crore in Year 4, and ₹560 Crore in Year 5.

Target Segments of Medical Devices:

Target Segment 1: Cancer care and Radiotherapy medical devices.
Target Segment 2: Radiology & Imaging medical devices (including X-ray, MRI, etc.) and Nuclear Imaging devices.
Target Segment 3: Anaesthetics & Cardio-Respiratory medical devices, Oxygen Concentrators, including specific Catheters and Renal Care medical devices.
Target Segment 4: All implants, such as implantable electronic devices (e.g., Cochlear Implants, Pacemakers).

Note: Key components that form a major part of a finished medical device and have a separate HS code are also considered within their respective target segments.

How To Apply

The scheme is managed by the Industrial Finance Corporation of India (IFCI), acting as the Project Management Agency (PMA). You must submit a complete application within 120 days of the application window opening. Specific details on application submission and evaluation are handled by the PMA.

Official Sources:

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

Documents Required

Certificate of Incorporation for the company.
Details and proof of your Greenfield Project setup.
Evidence of investments made.
Certified data of incremental sales from your Statutory Auditor.
Auditor's certificate verifying relevant figures.
Your company's financial statements.
Any other documents as requested by the Department of Pharmaceuticals.

FAQ’s

Which types of medical devices are covered under this PLI scheme?

The scheme covers four main segments: Cancer care/Radiotherapy devices, Radiology & Imaging devices (including nuclear imaging), Anaesthetics & Cardio-Respiratory devices (like oxygen concentrators), and all types of implants.

What is the duration of the Production Linked Incentive Scheme?

The scheme is planned to run from the Financial Year 2020-21 up to the Financial Year 2027-28.

Can I apply if my project is an expansion of an existing facility?

No, this scheme is exclusively for greenfield projects, meaning new manufacturing facilities that are being established from scratch.

What exactly is 'incremental sales' for the incentive calculation?

Incremental sales refer to the increase in your sales of manufactured medical devices compared to the sales figures from the base year, which is FY 2019-20.

Is there a specific deadline to submit the application?

Yes, you must submit a complete application within a 120-day window once the application period begins.

How is the incentive amount calculated for each year?

The incentive is calculated as 5% of the incremental sales achieved in a given financial year over the base year's sales (FY 2019-20). This rate is consistent across all five years of incentive disbursement.

What is the minimum investment required to be eligible for the scheme?

You need to achieve a cumulative investment of at least ₹180 Crore over the first three years of the scheme. This includes a minimum of ₹60 Crore in Year 1, ₹120 Crore by Year 2, and ₹180 Crore by the end of Year 3.

Can a company apply for benefits under this scheme if they are already receiving support from other government schemes?

Yes, being eligible under this PLI scheme does not prevent you from taking advantage of other government schemes as well.

Who is responsible for managing the implementation of this PLI scheme?

The scheme is implemented by a designated agency, the Industrial Finance Corporation of India (IFCI), which acts as the Project Management Agency (PMA).