Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices

The Production Linked Incentive (PLI) Scheme for Promoting Domestic Manufacturing of Medical Devices is administered by the Department of Pharmaceuticals, which operates under the Ministry of Chemicals and Fertilizers. Its stated purpose is to strengthen India's position in the healthcare sector by expanding local production capacity and drawing investment into the medical device industry. Through financial incentives for greenfield projects, the scheme seeks to lower reliance on imports and position India as a manufacturing base for medical technology.

Incentives are calculated on incremental sales relative to a base year (FY 2019-20), provided companies meet specified minimum investment thresholds. This structure ties rewards to verifiable growth and a sustained commitment to scaling domestic operations. The Industrial Finance Corporation of India (IFCI) serves as the Project Management Agency (PMA), handling applications, appraisals, and disbursements.

The scheme targets four segments: - Cancer care / Radiotherapy medical devices - Radiology & Imaging medical devices (both ionizing & non-ionizing radiation products) and Nuclear Imaging devices - Anaesthetics & Cardio-Respiratory medical devices, Oxygen Concentrators, including Catheters of Cardio-Respiratory Category & Renal Care medical devices - All implants, including implantable electronic devices like Cochlear Implants and Pacemakers.

A key component that constitutes a major part of a finished medical device, such as Rotating Anode Tube, MRI Magnet, or Flat Panel Detector, and has a distinct HS code, is also considered eligible under the corresponding target segment, promoting deeper localization of the supply chain.

- **Online Mode**: Candidates who meet the eligibility criteria must register through the web portal at https://plimedicaldevices.ifciltd.com/. - **Preparation**: Assemble the application, including every required detail and supporting document as outlined in the scheme guidelines. - **Submission**: File the completed application within the prescribed application period, normally lasting 120 days. - **Appraisal**: The Project Management Agency (PMA), namely the Industrial Finance Corporation of India (IFCI), will evaluate the submitted application. - **Approval**: Applications that qualify will be forwarded to an Empowered Committee for the final decision. - **Claim Submission**: After approval, applicants may submit periodic claims for incentive payouts, calculated on the basis of incremental sales and verified investments. - **Disbursement**: Incentives are paid out only after the PMA has completed a detailed verification of the claims.

The assessment of applications is carried out in stages to confirm that only qualifying projects with strong potential are granted the incentives. Initially, the Project Management Agency (PMA), Industrial Finance Corporation of India (IFCI), conducts a rigorous appraisal. This review examines the proposed greenfield project, its financial soundness, adherence to the minimum investment requirements, and the anticipated incremental sales figures.

After the PMA completes its evaluation, applications that meet the criteria are forwarded to an Empowered Committee for the final decision and sanction. The committee assesses how well each project aligns with the scheme’s objectives and its likely contribution to strengthening domestic medical device manufacturing.