Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India
Ministry of Chemicals and Fertilizers · Central government
The PLI scheme pays manufacturers incentives on incremental sales to lift domestic output of KSMs, DIs and APIs.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Released against milestones
- Scheme duration
- 121 months
About this scheme
The Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India, runs the Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India. Under this scheme, financial incentives are extended on incremental sales, with the objective of expanding domestic production capacity for select KSMs, DIs and APIs. A stated purpose of the scheme is to bring down India's import reliance for these 41 critical pharmaceutical products.
Only greenfield projects qualify, a condition intended to draw fresh and sizeable investment into pharmaceutical manufacturing. The scheme carries a total financial outlay of ₹6,940 crore and operates from FY 2020-21 to FY 2029-30, with FY 2019-20 treated as the base year for calculating performance.
The Industrial Finance Corporation of India (IFCI) has been appointed as the Project Management Agency (PMA). In that role, IFCI handles implementation of the scheme and carries out its assessment.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Not restricted
Eligibility conditions:
- The applicant must be a manufacturer of critical KSMs/DIs and APIs registered in India. - Only greenfield projects qualify, meaning new manufacturing facilities. - The project must satisfy the threshold investment criteria set for its product segment; these thresholds range from ₹20 crore to ₹400 crore.
How to apply
Applications are accepted only online, through the dedicated portal at https://plibulkdrugs.ifciltd.com/login.
An application fee applies, and the amount depends on the eligible product. Applicants seeking Penicillin G, 7-ACA, Erythromycin Thiocynate (TIOC), or Clavulanic Acid pay ₹1,00,000. For every other eligible product, the fee is ₹50,000.
Payment must be made electronically by NEFT/RTGS, credited to the designated bank account: IFCI – PLI – Bulk Drugs, Account Number: 3859475896, Central Bank of India, IFSC Code: CBIN0281410, Nehru Place Branch, New Delhi - 110019.
How applications are assessed
The Project Management Agency (IFCI) evaluates each application against the details submitted by manufacturers. This involves checking the threshold investment pledged for greenfield projects and assessing the projected incremental sales of the specified KSMs/DIs/APIs.
Statutory Auditor certificates form a key part of the documentation examined, confirming that scheme criteria and investment milestones have been met before any incentive is approved and disbursed.
Frequently asked questions
What is the primary objective of the PLI Scheme for Bulk Drugs?
The scheme supports India's domestic production of Key Starting Materials (KSMs), Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs), with the goal of lowering the country's reliance on imports.
What kind of financial incentives are offered under this scheme?
Manufacturers can claim financial incentives on incremental sales of 41 identified products over 6 years, with rates ranging from 5% to 20% based on the product segment (Fermentation-based or Chemical Synthesis-based) and the financial year.
Who is eligible to apply for this scheme?
Manufacturers of critical KSMs/DIs and APIs registered in India may apply, provided the project is greenfield and meets the threshold investment criteria applicable to its product segment.
What is the total financial outlay and tenure of the scheme?
The scheme is funded with ₹6,940 crore and operates between FY 2020-21 and FY 2029-30, taking FY 2019-20 as its base year for calculations.
How does one apply for the PLI Scheme for Bulk Drugs?
Applications are submitted online through the official portal, and the prescribed fee — ₹1,00,000 for specific products or ₹50,000 for other eligible products — must be remitted electronically by NEFT/RTGS to the designated IFCI bank account.
What is meant by a 'greenfield project' in the context of this scheme?
A greenfield project is a manufacturing facility or unit constructed from the ground up, as opposed to the expansion or modernisation of an existing plant. Under this scheme, such fresh investments within the pharmaceutical sector are the specific focus of support.
Sectors
- Health Pharma Biotech
- Pharmaceuticals
- Manufacturing
- Bulk Drugs
- Apis
- Ksms
- Dis
- Greenfield Projects
- Government Scheme
Details last verified on 15 September 2026. Source: the issuer's published information.