Centre invites drugmakers to apply for PLI scheme aimed at boosting key medicines production

New Delhi, May 25 The Department of Pharmaceuticals has invited applications from drug manufacturers under the Production Linked Incentive (PLI) scheme to set up new manufacturing units for 11 key pharmaceutical products.

This move aims to strengthen India’s domestic drug production capabilities.

The products include important antibiotics and painkillers such as Neomycin, Gentamycin, Erythromycin, Streptomycin, Tetracycline, Ciprofloxacin, and Diclofenac Sodium.

These medicines are either unsubscribed or only partially subscribed under the earlier phases of the scheme. Manufacturers can submit their applications until June 14.

The PLI scheme comes with certain conditions. Incentives will be provided based on available capacity, a defined ceiling for each product, and the production timeline.

For chemical synthesis products, the incentive period will last until the financial year 2027-28, while for fermentation-based products, it will extend up to 2028-29.

However, companies that were previously approved and later withdrew or had their approvals cancelled are not eligible to reapply.

The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has encouraged its members to make the most of this opportunity.

Pharmexcil Director General Raja Bhanu said the scheme offers a significant chance for companies to boost their manufacturing capacity in essential drug ingredients.

This fresh call for applications is part of the government’s ongoing push to promote domestic production of critical Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs).

The PLI scheme for these categories was first introduced in 2020 and later revised to better suit the industry's needs. It covers a total of 41 products and has a financial outlay of Rs 6,940 crore.

The initiative is part of a broader effort by the government, which launched PLI schemes for 14 major sectors four years ago.

These include bulk drugs, medical devices, electronics, food processing and automobiles.

According to official data, till November 2024, about 764 applications had been approved under these schemes, leading to an investment of Rs 1.61 lakh crore (around $18.7 billion).

The government has disbursed Rs 14,020 crore in incentives so far under 10 sectors.

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