21 projects with installed capacity of 33,895 MT commissionedunder PLI scheme for KSM, DI and APIs

New Delhi, December 12, 2022:

The Central government's production linked incentive (PLI) scheme for promotion of domestic manufacturing of critical key starting materials (KSMs), drug intermediates (DIs) and active pharmaceutical ingredients (APIs) has seen 21 projects, out of the 51 applications selected so far, being commissioned with an installed capacity of 33,895 MT.

Likewise, the PLI scheme for promoting domestic manufacturing of medical devices, which was also announced with a tenure from FY 2020-21 to FY 2027-28, has seen 13 out of the 21 applications selected under the scheme, according to the ministry of chemicals and fertilisers.

Under the PLI Scheme for promotion of domestic manufacturing of critical KSMs/DIs and APIs in India, with a financial outlay of Rs. 6,940 crore and the tenure from FY 2020-2021 to FY 2029-30, the financial incentive is planned to be provided for 41 identified products.

BhagwanthKhuba, minister of state in the ministry of chemicals and fertilisers stated in the Parliament, "A total of 51 applications have been selected under the scheme. Out of these, 21 projects have already been commissioned with the installed capacity of 33,895 MT.".

"The government has taken several measures to encourage domestic manufacturing of pharmaceutical drugs, including bulk drugs and medical devices to reduce import dependence and to establish a dominant position in the global market," said the Minister.

Under the PLI scheme for promoting domestic manufacturing of medical devices, with a financial outlay of Rs. 3,420 crore and with the tenure from FY 2020-21 to FY 2027-28, financial incentive is to be given to selected companies at the rate of 5% of incremental sales of medical devices manufactured in India and covered under the four target segments of the scheme, for a period of five years.

A total of 21 applications/projects have been selected under the scheme. Out of these, 13 projects have been commissioned for 31 products.

Under the scheme for Promotion of Medical Devices Parks, final approval for financial assistance of Rs. 100 croreeach, has been given to the States of Uttar Pradesh, Tamil Nadu, Madhya Pradesh and Himachal Pradesh for establishment of common facilities in their Medical Device Parks.

Commenting on the schematic initiatives to support the pharma and medical devices industry, the Minister added that the PLI scheme for Pharmaceuticals, with a financial outlay Rs. 15,000 crore and the tenure from FY 2020- 2021 to FY 2028-29, provides for financial incentive to 55 selected applicants for manufacturing of identified products under three categories for a period of six years.

The scheme for Promotion of Bulk Drug Parks, with a financial outlay of Rs. 3,000 crores and the tenure from FY 2020-2021 to FY 2024-25, provides for financial assistance to three States for establishing Bulk Drug Parks. After evaluation of the proposals received from 13 States, the proposals of the states of Gujarat, Himachal Pradesh and Andhra Pradesh have been finally approved for providing grants-in-aid for creation of common infrastructure facilities in the proposed Bulk Drug Parks.

The Department is implementing the scheme of Strengthening of pharmaceutical Industry (SPI), with a financial outlay of Rs. 500 crore and the tenure from FY 2021- 2022 to FY 2025-26 to provide infrastructure support for pharma MSMEs in clusters and to address the issues of technology upgradation of individual pharma MSMEs.

In addition to these schematic interventions, in order to attract investments in this sector, the government has allowed 100% foreign direct investments (FDI) in the medical devices sector. Similarly, it has allowed 100% FDI in the pharma sector for greenfield projects under automatic route. For the brownfield projects, upto 74%, FDI investments are allowed under automatic route and beyond 74% to 100%, FDI investments are allowed under government approval route.

In order to redress the specific challenges of the MedTech Industry, in view of the diversity and multi-disciplinary nature of the sector, the institutional mechanism of Standing Forum of Medical Devices Associations, has been set up to deliberate on various issues with all the stakeholders including regulators, added the Minister.Pharmabiz