Production Linked Incentive (PLI) Scheme for Pharmaceuticals

The Production Linked Incentive (PLI) Scheme for Pharmaceuticals was introduced by the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers. Its stated purpose is to expand domestic manufacturing capacity in the pharmaceutical sector, encourage higher investment and output, and shift production towards high-value items such as advanced pharmaceutical products and in-vitro diagnostic medical devices. Incentives are calculated on incremental sales relative to a defined base year, with the aim of positioning India as a major participant in the global pharmaceutical supply chain.

The Small Industries Development Bank of India (SIDBI) serves as the Project Management Agency (PMA) for the scheme. SIDBI handles application processing and manages incentive disbursal through a dedicated online portal. The programme is intended to reinforce the domestic pharmaceutical ecosystem, support innovation, and lessen dependence on imported critical ingredients and finished formulations.

- **Step 1: Access the Portal:** Go to the official online portal at https://pli-pharma.udyamimitra.in. - **Step 2: Register and Apply:** Create an account on the portal and complete the application form in full, providing accurate information on your Global Manufacturing Revenue, investment commitments, and the pharmaceutical product categories relevant to your business. - **Step 3: Submit Application Fee:** Pay the non-refundable application fee as specified in the scheme guidelines. - **Step 4: Await Processing:** The Project Management Agency (SIDBI) will review submitted applications and rank them according to a predefined methodology. This evaluation is generally concluded within 90 days after the application window closes. - **Step 5: Receive Approval:** Successful applicants will be issued an official approval letter by the Project Management Agency. - **Step 6: Furnish Guarantees:** Within two weeks of receiving the approval letter, provide a Bank Guarantee for the prescribed amount and an Undertaking in favour of the Department of Pharmaceuticals. - **Step 7: Claim Incentives Annually:** Submit your annual claims for incentive disbursement through the online portal, along with all necessary supporting documents, within one month of the end of the financial year.

Applications are processed and assessed by the Project Management Agency (SIDBI). A pre-defined ranking methodology determines selection, taking into account the applicant's Global Manufacturing Revenue, committed investments, and proposed product categories. Results are usually communicated within 90 days of the application window closing.