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PLI scheme for pharmaceuticals witnesses investment of Rs. 940 crore in May
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Gireesh Babu, New Delhi
June 29 , 2024
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The production linked incentive (PLI) scheme for pharmaceuticals has seen investment of Rs. 940 crore made in the month of May, taking the total investment into the projects growing around 3.32 per cent to Rs. 29,268 crore during the month compared to Rs. 28,328 crore investment in the month of April, 2024.
According to data from the Department of Pharmaceuticals (DoP), the actual production grew 12.3 per cent during the month of May, to Rs. 1,61,209 crore, as compared to Rs. 1,43,553 crore in the previous month of April,2024.
Actual employment under the PLI for pharmaceuticals has reported a growth of 20 per cent, to 71,763 persons as against 59,768 persons in the previous month. Projects have been commissioned in a total of 261 manufacturing locations, till May, 2024.
However, investment into the PLI scheme for bulk drugs has reported a marginal growth at Rs. 3,737.33 crore as compared to Rs. 3,715 crore till the previous month.
Actual production of bulk drugs under the scheme has grown 10.3 per cent, to Rs. 1,067.45 crore in the month of May, as compared to Rs. 968 crore till the month of April, 2024.
The actual employment under the scheme for bulk drugs has reported 19 per cent growth during the month, with 3,565 persons employed in May, as compared to 2,994 persons in the previous month. One more project got commissioned during the month, taking the total number of projects commissioned so far under the scheme for bulk drugs to 31.
The PLI scheme for pharmaceuticals, launched in the year 2021, has a financial outlay Rs. 15,000 crore and the tenure from FY 2020- 2021 to FY 2028-29, is expected to provide for financial incentive to 55 selected applicants including 20 Micro, Small and Medium Enterprises (MSMEs) for manufacturing of identified products under three categories for a period of six years.
The Department has received a total of 278 applications in four rounds, out of which 55 has been approved for further assistance.
The PLI scheme for bulk drugs has around 48 applications approved out of the total 249 applications received for the scheme in four rounds.
The scheme for bulk drugs, launched in the year 2020, is for promotion of domestic manufacturing of critical import dependent bulk drugs - key starting materials (KSMs)/drug intermediates and active pharmaceutical ingredients (APIs) in the country by setting up greenfield plants in four different target segments - target segments 1 and 2 are fermentation based and target segments 3 and 4 are chemical synthesis based.
The scheme envisages manufacturing of 41 bulk drugs with a total outlay of Rs. 6,940 crore, during the tenure of the scheme i.e. 2020-21 to 2029-30. The scheme envisages incentive at the rate of 20% for first four years, 15% for fifth year and 5% for sixth year on eligible sales of fermentation based bulk drugs. In respect of chemical synthesis based bulk drugs, incentive is to be given at the rate of 10% for six years on the eligible sales. The government has in the beginning of March, this year, inaugurated 27 Greenfield bulk drug park projects and said that penicillin G, which was not produced in India for 30 years, will be produced in India soon, under the scheme.
The Department, during the time, said that the projects under the scheme are facilitated and supported by the Department of Pharmaceuticals by hand holding and bringing about required regulatory streamlining across the government departments.
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