PLI scheme for pharmaceuticals: Govt releases Rs 166-cr incentives in first batch

The government on Tuesday made its first release of Rs 166 crore of incentives under the PLI scheme of pharmaceuticals to four selected applicants, according to the department of pharmaceuticals.

Under the umbrella of Atmanirbhar Bharat initiative of the government, the department of pharmaceuticals launched the PLI scheme for pharmaceuticals in 2021, wherein the financial outlay is Rs 15,000 crore over a period of six years and 55 applicants have been selected under the scheme, including the 20 MSMEs.

FY22-23 is the first year of production for the PLI Scheme for pharmaceuticals, the department said, adding that the department has earmarked about Rs 690 crore as Budget outlay in the present fiscal.

Under the PLI Scheme, with an objective to enhance India's manufacturing capabilities and contributing to product diversification towards high-value goods in the pharmaceutical sector, three different categories of products are supported, namely Category 1 such as biopharmaceuticals; complex generic drugs; patented drugs or drugs nearing patent expiry; cell-based or gene therapy drugs; special empty capsules, complex excipients, according to the department of pharmaceuticals.

Category 2 namely bulk drugs with an except of those 41 eligible products notified under "PLI scheme for bulk drugs, and Category 3 of drugs not covered under Category 1 and Category 2 such as repurposed drugs; auto immune drugs, anti-cancer drugs, anti-diabetic drugs, anti-infective drugs, cardiovascular drugs, psychotropic drugs and anti-retroviral drugs.

Against the expected investment of Rs 17,425 crore in the pharmaceutical sector over the scheme period, in the first year of implementation, so far, the scheme has garnered an investment of Rs 16,199 crore by these 55 applicants.

Against the expected employment of 1 lakh over six-year scheme period, so far, employment of 23,000 persons have been provided under the scheme, according to the department.

So far, the department has received an incentive claim of about Rs 544 crore from 15 applicants. Based on the evaluation, Rs 221 crore of claims of incentives from four applicants namely, Dr. Reddy's Laboratories, Biocon, Strides Pharma Science, Premier Medical Corporation, were found to be eligible and 75 per cent of this amount, which means Rs 165.74 crore have been released. The remaining incentives are under examination.

As of January 31, 2023, sales of about 36,000 crore have been reported by the select 55 applicants.

The Department of Pharmaceuticals also implements two other PLI, namely PLI for Bulk Drugs and PLI for Medical Devices, which have achieved significant milestones in the first year of implementation.

Under the PLI scheme for Bulk Drugs with a financial outlay of Rs 6,940 crore with an objective to boost domestic production of 41 select critical bulk drugs in the country, so far, 51 projects have been selected for the 34 notified bulk drugs. Of these, 22 projects have been commissioned till date.

Against a committed investment of Rs 4,138 crore over the scheme period of six years under the scheme, so far, an investment of Rs 2,019 crore has been reported and the remaining will be realised in the coming year.

Bulk Drugs such as 1,1 Cyclohexane Diacetic Acid (CDA), Para Amino Phenol (raw material for paracetamol), Sulfadiazine, Atorvastatin, Carbamazepine, Oxcarbazepine, Levofloxacin etc have reported sales in this FY. According to the department, about 1,900 employment provided under the scheme, so far.

Under the PLI scheme for medical devices with a financial outlay of Rs 3,420 crore, with an objective to establish domestic manufacturing capability of high-end medical devices.

Against a committed investment of Rs 1,059 crore over the scheme period of five years under the scheme, so far, an investment of Rs 714 crore have been reported, according to the department. Till date 14 projects have already been commissioned for 34 products.

( With inputs from ANI )