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Home / News / India /  Pharma and medical devices industry has shown positive response for PLI: Govt

Anticipated to be a push for the government’s notion of Atmanirbhar Bharat (self-reliant India), 215 applications from 83 pharmaceutical manufacturers and 28 applications from 23 medical device manufacturers were sent in response to the government’s Production Linked Incentive (PLI) scheme for bulk drugs and medical devices.

The department of pharmaceuticals under the Ministry of Chemicals and Fertilizers that closed applications on Monday said that the industry has shown a very positive response towards the schemes. The IFCI Ltd. is the Project Management Agency (PMA) for implementation of both the schemes. The government said that the appraisal process of the applications commenced from Tuesday onwards and a maximum of 136 applications under the PLI scheme for bulk drugs and a maximum of 28 applications under the PLI scheme for medical devices will be approved.

“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. 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 ministry said in a statement.

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 government 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 PLI Schemes for Bulk Drugs and for Medical Devices was approved by the Government on 20 March, 2020. The initial guidelines for implementation of both the schemes which were initially issued on 27 July 2020 were amended based on the feedback received from the industry. These revised guidelines were issued on 29 October 2020.

The medical devices and pharmaceutical industry welcoming the move called for more Make in India friendly policies from the government. “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 42000 crores 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, incentivising 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 UP, Haryana, Kerala and Tamil Naidu - to name the front runners," said Nath.

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