Lok Sabha Question No. 3335 (UNSTARRED), answered on 2021-03-16
Subject: Pharmaceutical and Medical Device Industry
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Bhagwanth Khuba

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION No. 3335 TO BE ANSWERED ON THE 16 th  March, 2021

## Pharmaceutical and Medical Device Industry

## 3335. SHRI BHAGWANTH KHUBA:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

(a) whether the Government has launched any new initiative to support the pharmaceutical and medical devices manufacturing industry to reach their potential in the coming years; (b) if so, the details thereof; and

(c) the fresh steps taken by the Government for promoting domestic manufacturing of bulk drugs and medical devices in the country?

## ANSWER

## MINISTER IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI D. V. SADANANDA GOWDA)

(a) to (c):    The Department of Pharmaceuticals has recently launched following five schemes for  promoting  domestic  manufacturing  of  Pharmaceutical  drugs  including  bulk  drugs  and medical  devices  by  attracting  large  investments  in  the  sector  to  ensure  their  sustainable domestic supply and thereby reduce India's import dependence on other countries:-

(I) 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: Under the scheme, financial incentive will be given for manufacturing of 41 Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs). Incentives for incremental sales will be given to selected participants for a period of 6 years. The total financial outlay of the scheme is Rs. 6,940 crore and the tenure of the scheme is from FY 2020-2021 to 2029-30.

- (II) Scheme for Promotion of Bulk Drug Parks: This scheme provides for grant-in-aid to 3 Bulk Drug Parks for creation of Common Infrastructure Facilities (CIF) with a maximum limit of Rs.1000 crore per park or 70% of the project cost of CIF, whichever is less. In case of North Eastern States  and Hilly States (Himachal Pradesh,  Uttarakhand,  Union Territory  of Jammu & Kashmir and Union Territory of Ladakh) financial assistance would be 90% of the project cost. The total financial outlay of the Scheme is Rs. 3000 crore and the tenure of the Scheme is from FY 2020-21 to 2024-25.
- (III) Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices: Under the Scheme, financial incentive will be given to selected companies at the rate of 5% of incremental sales of medical devices manufactured in India and covered under the Target segments of the scheme, for a period of five (5)  years. The tenure of the scheme is from FY 2020-21 to FY 2027-28. The total financial outlay of the Scheme is Rs. 3,420 crore.
- (IV) Promotion of Medical Device Parks: This  scheme  provides  for  grant-in-aid  to  4 Medical Device Parks for creation of Common Infrastructure Facilities (CIF) with a maximum limit of Rs.100 crore per park or 70% of the project cost of CIF, whichever is less. In case of North Eastern States  and Hilly States (Himachal Pradesh,  Uttarakhand,  Union Territory  of Jammu & Kashmir and Union Territory of Ladakh) financial assistance would be 90% of the project cost. The total financial outlay of the Scheme is Rs. 400 crore and the tenure of the Scheme is from FY 2020-21 to FY 2024-25.

The above four schemes were notified on 21.07.2020 in the Gazette of India and the detailed  guidelines  of  these  schemes  are  available  on  the  website  of  the  Department  of Pharmaceuticals i.e. http://pharmaceuticals.gov.in.

- (V) Production  Linked  Incentive  Scheme  for  Pharmaceuticals :  The  Union  Cabinet recently approved Production Linked Incentive scheme for Pharmaceuticals with the objective to enhance India's manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high value goods in the pharmaceutical sector. One of the further objectives of the scheme is to create global champions out of India who have the potential to grow in size and scale using cutting edge technology and thereby penetrate the global value chains. The total financial outlay of the scheme is Rs. 15,000 crore and three categories of pharmaceutical goods will be incentivized under the scheme based on their  incremental  sales.  The  tenure  of  the  scheme  is  from  FY  2020-2021  to  2028-29.  The scheme has been notified on 3.3.2021 in the Gazette of India.

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