Tatsat Chronicle Magazine

Operational Guidelines For Production Linked Incentives For Pharma Industry Issued

July 6, 2021
pharma industry
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NEW DELHI: The Government has issued operational guidelines for Production Linked Incentive Scheme for the Pharmaceutical or Pharma Industry. The notification for the same was issued on March 3, 2021.

The approved outlay of the scheme is Rs. 15,000 crores. It envisages creating global champions out of India and thereby penetrate the global value chain, using cutting edge technology. Based on a series of consultations with the pharmaceutical industry and stakeholders, the government has put in place operational guidelines for the scheme. The scheme is now open to applications from the industry.

A special carve-out for MSMEs has been kept under the scheme. The application can be submitted on https://pli-pharma.udyamimitra.in. The application window is for 60 days starting from June 2, 2021, to July 31, 2021 (both dates inclusive).

The eligible products have been grouped into three categories. The products covered are formulations, biopharmaceuticals, active pharmaceutical ingredients, key starting material, drug intermediates, in-vitro diagnostic medical devices, etc. Category one and two products attract 10 percent incentive, while category-3 products attract 5 percent incentive on the incremental sales.

Based on clearly laid out selection criteria, a maximum of 55 applicants will be selected under the scheme. An applicant, through a single application, can apply for more than one product and the products applied by an applicant can be in any of the three categories. The applicants will be required to achieve minimum cumulative investment per year over a period of 5 years as prescribed under the scheme. The investment made on or after April 1, 2020, will be considered as an eligible investment under the scheme.

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