Centre may remove minimum investment norms to boost bulk drug PLI plan roll-out.
                     CENTRE MAY REMOVE MINIMUM 
INVESTMENT NORMS TO BOOST 
BULK DRUG PLI PLAN ROLL-OUT
INTRODUCTION
• The government is considering removing the 
minimum investment norms laid down for eligibility 
for its production-linked incentive (PLI) scheme for 
drug ingredients and medical device makers after 
several companies complained they are too 
restrictive.
Source: livemint.com
NO MINIMUM LIMIT OF 
INVESTMENT
• The government is actively considering 
liberalizing the PLI schemes in terms of no 
minimum limit of investment. 
• That limit is going to go away after feedback 
from industry.
Source: livemint.com
EXTENDING THE APPLICATION 
DEADLINE
• The government is also considering extending the 
application deadline for availing the benefits of 
the scheme because of the proposed changes. 
• The current deadline is 23 November.
Source: cnbctv18.com
CUT INDIAN 
DEPENDENCY ON CHINA
• Minimum investment limits for being eligible to avail 
incentives under the scheme were one of the major 
concerns raised by firms that wanted to apply. 
• The PLI scheme aims to cut Indian drug makers’ 
dependence on China for key raw materials.
Source: livemint.com
FERMENTATION-BASED 
BULK DRUGS
• The government had set a minimum investment limit 
of ₹400 crore to avail benefits for setting up a unit to 
manufacture four fermentation-based bulk drugs, 
including Penicillin G and erythromycin thiocyanate. 
• It had also set investment limits of ₹20-50 crore to 
avail benefits for setting up manufacturing units of 37 
other bulk drugs.
Source: livemint.com
BULK DRUG PARKS’ 
PROMOTION SCHEME
• Department of Pharmaceuticals (DoP)’s recent 
notification on July 21 for Rs. 3,000 crore bulk drug 
parks’ promotion scheme and Rs. 6,940 crore PLI 
scheme for promotion of domestic manufacturing of 
critical key starting materials (KSMs)/ drug 
intermediates (DIs) and active pharmaceutical 
ingredients (APIs) in India. 
Source: twitter.com
ATMANIRBHAR BHARAT
• Bulk drugs scheme is to give recognition to Indian 
pharma industry as Atmanirbhar Bharat. 
• It is also welcome development that medical devices 
industry which has 86% dependence on imports 
clocked in Rs 49,500 crore worth of imports in 2019-
20.
Source: pharmabiz.com
COVID-19 IMPACT
• National Pharmaceutical Pricing Authority (NPPA) and 
Drugs Controller General of India (DCGI) did a great 
job during lockdown. Crisis was turned into 
opportunity. 
• Supporting the bulk drugs policy, Prime Minister has 
high opinion and expectations from the sector. 
• Transparency and guidelines will be followed and 
eligible manufacturers will be selected to set up bulk 
drugs park through a transparent process.
Source: expresspharma.com
PLI SCHEME
• PLI scheme which is applicable only for greenfield 
projects intends to boost domestic manufacturing of 
identified KSMs, DIs and APIs by attracting large 
investments in the sector and thereby reduce India’s 
import dependence in critical APIs. 
Source: news18.com
FINANCIAL INCENTIVES
• Under the scheme, financial incentives shall be given 
for six years based on sales made by selected 
manufacturers for 41 products which cover all the 
identified 53 APIs. 
• The tenure of the scheme is from FY 2020-21 to FY 
2029-30.
Source: pharmabiz.com