Among the various Production Linked Incentive (PLI) schemes that India has rolled out in recent months, the Indian pharmaceutical industry has got prime focus. Rightly so since it is the third-largest in the world by volume. In our previous article, Vaccine Brought Laurels to Indian Pharmaceutical Industry: Here is How PLI Scheme Furthers the Story you can read the details and significance of the PLI scheme in pharmaceuticals and the various aspects of pharma that is getting the PLI boost.
While offering a scheme is one thing, the reception it gets from the industry indicates the road towards success is another. So, are the pharma companies showing enthusiasm in applying for the scheme?
The Reception of Various PLI Offering in Pharma
In total, 215 applications have been received for the 36 products spread across the 4 Target Segments. The guidelines prescribed that the applications would be processed and decided within a period of 90 days, i.e., up to 28th February, 2021. Nineteen applications with a committed investment of ₹4,623.01 crore have already been approved under Target Segment I, II and III.
174 applications were received for 23 Eligible Products under Target Segment IV – Other Chemical Synthesis Based KSMs/ Drug Intermediates/APIs. Out of 174 applications, 79 applications received for 11 eligible products were considered as per the decided evaluation and selection criteria laid down by the Empowered Committee in its meeting held on 27th February, 2021.
A total of 33 applications with committed investment of ₹5,082.65 crore have been approved by the Government under the PLI Scheme for Active Pharmaceutical Ingredients (APIs). Setting of these plants will make the country self-reliant to a large extent in respect of these Bulk drugs. The disbursal of production linked incentive by the Government over the six years period would be up to a maximum of ₹5,440 cr.
It has been further decided to take up the remaining 95 applications under the Target Segment-IV till 31 March, 2021 for scrutiny and approval.