Production Linked Incentive (PLI) Scheme for Pharmaceuticals

The Ministry of Chemicals and Fertilizers, through its Department of Pharmaceuticals, introduced the Production Linked Incentive (PLI) Scheme for Pharmaceuticals. Its primary aim is to expand India's pharmaceutical manufacturing capacity by encouraging greater investment and output, and by shifting production towards higher-value goods such as advanced pharmaceutical products and in-vitro diagnostic medical devices.

Incentives under the scheme are calculated on incremental sales over a fixed base year. Through this structure, the scheme intends to position India as a leading player in the global pharmaceutical supply chain.

The Small Industries Development Bank of India (SIDBI) serves as the Project Management Agency (PMA) for the scheme. Applications are processed and incentive disbursements facilitated through a dedicated online portal.

The scheme supports the domestic pharmaceutical ecosystem, encourages innovation, and lowers dependence on imports for critical pharmaceutical ingredients and finished products.

1. **Step 1: Reach the portal:** Go to the official online portal at https://pli-pharma.udyamimitra.in. 2. **Step 2: Sign up and file your application:** Create a registration on the portal, then complete the detailed application form with accurate particulars covering your Global Manufacturing Revenue, investment commitments, and the specific pharmaceutical product categories in which your company operates. 3. **Step 3: Pay the application fee:** Remit the non-refundable application fee at the rate laid down in the scheme guidelines. 4. **Step 4: Wait for processing:** The Project Management Agency (SIDBI) will process the applications received and assess them using a predefined ranking methodology. This selection exercise is usually concluded within 90 days of the application window closing. 5. **Step 5: Approval:** Should your application be selected, the Project Management Agency will issue you an official approval letter. 6. **Step 6: Provide guarantees:** No later than two weeks from the date you receive the approval letter, furnish a Bank Guarantee for the prescribed amount together with an Undertaking in favour of the Department of Pharmaceuticals. 7. **Step 7: Claim incentives each year:** Every year, file your claims for incentive disbursement through the online portal, attaching all supporting documents that are required, within one month of the financial year closing.

The Project Management Agency (SIDBI) evaluates every application it receives. A pre-defined ranking methodology governs which applicants are selected, taking into account the applicant's Global Manufacturing Revenue, committed investments, and proposed product categories. Applicants can usually expect to hear the outcome within 90 days of the application window closing.