Government Rolls Out PLI Scheme Covering 11 Pharma Products

The Department of Pharmaceuticals has announced a fresh rollout of the Production Linked Incentive (PLI) scheme targeting 11 pharmaceutical products. This move is aimed at boosting domestic manufacturing of critical key starting materials (KSMs), drug intermediates (DIs), and active pharmaceutical ingredients (APIs).

The scheme specifically covers products like Neomycin, Gentamycin, Erythromycin, Streptomycin, Tetracycline, Ciprofloxacin, and Diclofenac Sodium. These are either unsubscribed or partially subscribed under previous phases and are now being actively prioritised.

Application Deadline and Eligibility Criteria

Drugmakers have until June 14 to submit their applications. The scheme comes with strict eligibility conditions. These include allocation based on available capacity, incentive ceilings per product, and incentive limits linked to the production period.

Chemical synthesis-based products will be eligible for incentives up to the financial year 2027-28, while fermentation-based products will qualify up to 2028-29. Importantly, companies whose prior approvals were cancelled or who voluntarily withdrew are not permitted to reapply.

Scope and Strategic Intent

This decision aligns with the government's broader strategy to enhance self-reliance in pharmaceutical manufacturing. It follows the original PLI guidelines issued in July 2020, which were later revised in October of the same year. That scheme covers 41 pharmaceutical products with a total financial outlay of ₹6,940 crore.

The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has urged its members to seize this opportunity. According to Pharmexcil Director General Raja Bhanu, the initiative offers significant potential for companies to expand their manufacturing capabilities in key pharma segments.

Wider PLI Impact Across Sectors

This pharma-focused announcement is part of India’s larger PLI framework launched 4 years ago across 14 critical sectors. These include bulk drugs, medical devices, food processing, IT hardware, white goods, and drones.

As of November 2024, 764 applications have been approved under these schemes, with reported investments nearing ₹1.61 lakh crore. An incentive payout of approximately ₹14,020 crore has already been disbursed across 10 of these sectors.

Read More: PLI-Auto Scheme Expands: Varroc Gets Nod for 7 Components as 3 New Firms Join the Roster.

Conclusion

The renewed focus on unsubscribed and partially subscribed pharmaceutical products under the PLI scheme reflects the Centre's push to bolster domestic production. By encouraging new manufacturing capacities, the government aims to reduce import dependence and strengthen the pharmaceutical supply chain for the future.

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