For Pharma API Rs. 15000 crore incentive scheme announced

- Antenna: Vivek Mehta

- Applicants are invited to apply in three different categories, they will be promoted based on sales of eligible products.

The government's Department of Pharmaceuticals has issued guidelines for the production link incentive scheme for active pharmaceuticals ingredients i.e. bulk drugs for making different drugs. Product Link Incentive Scheme has been launched for the manufacture of pharmaceutical raw materials in India.

In India, an incentive scheme of Rs 15,000 crore has been launched for manufacturers of active pharmaceutical ingredients. For active pharmaceutical ingredients, India is currently relying on China for 90 per cent. The decision has been taken to become self-sufficient in pharmaceutical production.

In the old PLI scheme, the government spent Rs. 20 crore was allotted. Also, a separate Rs. 5000 crore has been allocated. The Government of India also plans to avoid the importation of substandard bulk drugs.

Groups have been formed to apply for Product Link Incentive Scheme. Global Manufacturing Revenue of the group applicant in the year 2017-20 is Rs. 2000 crore or more. Income from sale of Pharmaceutical Goods and Medical Devices of Group B applicants is Rs. 200 crore to Rs. It needs to be between Rs 2,000 crore. Group C applicants are required to have income of less than Rs 500 crore from pharmaceutical goods and medical devices. Different groups can include subgroups falling under the category of MSMEs. People registered as Micro, Small or Medium Enterprise can apply.

The Department of Pharmaceuticals will select 3 applicants from among the applicants under the scheme. They will be allowed to apply for the benefit of PLI for more than one product in any of the three categories. He will have to make the same application. Each category will be given the benefit of PLI as per the prescribed norms.

For the first category applicants of Product Link Incentive Scheme, Rs. 11,000 crore has been allocated. These include biopharmaceuticals and complex generic drugs. Also included are drugs that have reached the expiration date of the patent or that have expired.

For the second category Rs. 50 crore has been allotted. It focuses on the production of bulk drugs. The 21 products included in it were not included in the previous scheme. For third category products of PLI scheme Rs. 150 crore has been allocated. These include reuptake drugs, autoimmune drugs, anti-cancer drugs and diabetes medications. It is planned to give them more and more incentives as the drug sales increase. It has an upper limit of annual incentives. They will be given incentive-incentives on condition that they increase their annual cumulative investment and sales by at least a certain percentage.

In order to determine the eligibility of the group to get incentive in the year 207-2, the minimum sales limit is Rs. 30 crore should be more. For group two applicants, the limit is Rs. 10 crore and the sales limit for Group C applicants is Rs. 1 crore has been made. Even in Group C, the minimum sale of MSME applicants is Rs. More than 20 lakh is required.

Eligible in the financial year, i.e. the benefit of the scheme, will be calculated on the basis of 5% of the actual sales of the eligible products.