Government calls for applications for PLI pharmaceuticals program

The government on Tuesday released operational guidelines for the production-linked incentive program (PLI) for the pharmaceutical sector.

The approved program expenditure is ₹ 15,000 crore and it is open for industry applications from June 1 to July 31. Applications are invited in three groups based on the global manufacturing turnover of the program. ‘2019-20 candidates’ fiscal year, he said in a press release.

“A special exception for MSMEs has been maintained under the program. All applications will be submitted through an online portal managed by SIDBI, the project management agency for the program. The request can be made on the online portal, the URL of which is », Indicates the government press release.

Three categories

According to the government statement, the products covered by the scheme are formulations, biopharmaceuticals, active pharmaceutical ingredients, key raw materials, drug intermediates, in vitro diagnostic medical devices, etc. Eligible products have been classified into three categories. Category 1 and Category 2 products attract 10 percent incentive and Category 3 products attract 5 percent incentive on additional sales. Additional sales of a product means the sales of that product in one year beyond the sales of that product in the 2019-2020 fiscal year.

The government will select a maximum of 55 applicants under the program and each applicant, through a single application, can apply for more than one product and the products applied by an applicant can fall into one of three categories.

“Applicants will be expected to make a minimum cumulative investment per year over a period of 5 years, as prescribed under the program. The investment could relate to new plant and machinery, new equipment and associated utilities, research and development, technology transfer, product registration and expenses incurred for the construction where the plant and machinery are installed. . Investments made from April 1, 2020 will be considered eligible investments under the program, ”he added.

Shortlisted manufacturers will receive LIPs based on additional sales of pharmaceuticals for 6 years. A selected participant will receive a maximum bonus of ₹ 1,000 crore, ₹ 250 crore and ₹ 50 crore, respectively, depending on their group during the program period.

“An additional incentive will be available based on performance, but under certain conditions. Under no circumstances would the total incentive, including additional inventiveness, be greater than ₹ 1,200 crore, ₹ 300 crore and ₹ 60 crore per selected participant respectively for the three groups during the period of the program, ”states the communicated.

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