Highlights of the PLI Scheme by Department of Pharmaceuticals

• The Department of Pharmaceuticals launched a ‘Production Linked Incentive Scheme’ on 21st July 2020, to address the constraints in the manufacturing of medical devices in India

• Linking incentives to production will encourage domestic manufacturing, thereby reducing India’s dependence on imports which contribute about 85% of the segment

• Under the Scheme, financial incentive shall be given to selected companies at the rate of 5% of incremental sales (over Base Year) of goods manufactured in India and covered under target segments, from FY 2021-22 to FY 2025-26

• The incentive per company will be applicable on incremental sales of manufactured goods over Base Year subject to ceilings as decided by the Empowered Committee of the Government

• The total financial outlay of the Scheme is INR3,420 crores. Though the incentive is offered over and above the incentives of the State Government or any of its agencies

Source: Primus Partners

By Vedang R. Vatsa

IT & Management Consultant