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 funds manufacturers with incentives on incremental sales to boost domestic production 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 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 has been introduced by the Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers, Government of India. Its objective is to strengthen domestic production of the identified KSMs, DIs, and APIs by offering financial incentives based on incremental sales. The programme targets a reduction in India's reliance on imports for these 41 critical pharmaceutical inputs.
The scheme applies only to greenfield projects, with the aim of attracting fresh capital into pharmaceutical manufacturing. The total financial outlay is ₹6,940 crore, and the scheme will run from FY 2020-21 through FY 2029-30, with FY 2019-20 serving as the base year for performance evaluation. The Industrial Finance Corporation of India (IFCI) has been appointed as the Project Management Agency (PMA) to handle implementation and monitoring.
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
- Open to manufacturers of critical KSMs/DIs and APIs registered in India. - Applicable exclusively for greenfield projects (new manufacturing facilities). - Subject to meeting specific threshold investment criteria, which vary by product segment (e.g., ₹20 crore to ₹400 crore).
How to apply
Applicants must submit their applications exclusively through the online portal at https://plibulkdrugs.ifciltd.com/login. A non-refundable application fee is charged, with the amount determined by the product category. For Penicillin G, 7-ACA, Erythromycin Thiocynate (TIOC), and Clavulanic Acid, the fee is ₹1,00,000; for all other eligible products, it is ₹50,000. Payment of this fee is to be made electronically via NEFT or RTGS to the designated account: IFCI – PLI – Bulk Drugs, Account Number 3859475896, held with Central Bank of India, Nehru Place Branch, New Delhi - 110019, using IFSC Code CBIN0281410.
How applications are assessed
The Project Management Agency (IFCI) will review each application against the information provided by the manufacturer. This review will confirm that the committed investment for greenfield projects meets the required threshold and will assess the projected incremental sales of the identified KSMs, DIs, or APIs. Certificates from the Statutory Auditor will form an essential part of the documentation examined to verify compliance with the scheme’s criteria and investment milestones, prior to the approval and release of incentives.
Frequently asked questions
What is the primary objective of the PLI Scheme for Bulk Drugs?
The scheme seeks to increase domestic production of critical Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) in India, with the goal of lowering reliance on imports.
What kind of financial incentives are offered under this scheme?
Manufacturers get financial incentives on incremental sales of 41 identified products for 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?
The scheme is open to manufacturers of critical KSMs/DIs and APIs registered in India, with eligibility limited to greenfield projects. Applicants must meet threshold investment criteria, which differ by product segment.
What is the total financial outlay and tenure of the scheme?
The scheme’s total financial outlay is ₹6,940 crore, covering FY 2020-21 through FY 2029-30, with FY 2019-20 as the base year for calculations.
How does one apply for the PLI Scheme for Bulk Drugs?
Applicants must submit their application online via the official portal and pay the applicable fee electronically through NEFT/RTGS to the designated IFCI bank account—₹1,00,000 for specific products or ₹50,000 for other eligible products.
What is meant by a 'greenfield project' in the context of this scheme?
A greenfield project is a new manufacturing facility or unit constructed from scratch, as opposed to upgrading or expanding an existing plant. This scheme specifically supports such new investments in the pharmaceutical sector.
Sectors
- Health Pharma Biotech
- Pharmaceuticals
- Manufacturing
- Bulk Drugs
- Apis
- Ksms
- Dis
- Greenfield Projects
- Government Scheme
Details last verified on 3 August 2026. Source: the issuer's published information.