Pharma PLI scheme sees good response2 min read . Updated: 02 Dec 2020, 08:25 AM IST
- The incentive scheme received 215 applications from 83 bulk drug makers
New incentive schemes to promote local manufacturing of drugs and medical devices have received a positive response, the Union government said on Tuesday.
The production-linked incentive (PLI) schemes received 215 applications from 83 bulk drug makers and 28 applications from 23 medical device manufacturers, the department of pharmaceuticals said.
Applications for the schemes closed on Monday, and their appraisal commenced on Tuesday. A maximum of 136 applications for bulk drugs and 28 applications for medical devices will be approved.
IFCI Ltd is the project management agency (PMA) for both schemes.
“The time duration for giving approval to the applicants is 90 days under the PLI scheme for bulk drugs and 60 days under the PLI scheme for medical devices," an official statement said. “However, best efforts will be done by the PMA and the department of pharmaceuticals to give early approvals to the participants under the scheme."
The PLI Schemes for Bulk Drugs and Medical Devices was approved by the government on 20 March.
Initial guidelines issued on 27 July were amended based on the feedback received from the industry. The revised guidelines were issued on 29 October.
Looking at the increasing imperative of drug security, support to domestic production capability in bulk drugs would ensure higher resilience of the Indian pharmaceutical industry to external shocks, the statement said.
The PLI scheme for medical devices will help meet the objective of product diversification and production of innovative and high-value medical devices in India. These initiatives have the potential to contribute significantly to achieving higher objective of affordable healthcare in the country and globally on a sustained basis, said the government.
The medical devices and pharmaceutical industry welcomed the move and called for more similar steps.
“The PLI scheme is a very welcome start taken by department of pharmaceuticals for an Atmanirbhar Bharat (self-reliant India). We look forward to more Make in India supportive policies to end our 70-80% import dependence of ₹42,000 crore, such as nominal tariff protection, separate medical devices law, cap on MRP-linked trade margins over imports landed price/ ex-factory price, preferential procurement for indigenous products, incentivizing ICMED certification and restrictions on imports of pre-owned equipment," said Rajiv Nath, forum coordinator, Association of Indian Medical Device Industry (AIMED).
“All these factors will motivate Indian and overseas investors to take advantage of the infrastructure being planned to be created in Medtech Parks coming up in Uttar Pradesh, Haryana, Kerala and Tamil Nadu, to name the front-runners," he added.