Lok Sabha Question No. 3543 (UNSTARRED), answered on 2026-03-13
Subject: Production Linked Incentive Scheme
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Smt. Geniben Nagaji Thakor

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

LOK SABHA UNSTARRED QUESTION NO. 3543 TO BE ANSWERED ON THE 13 TH  MARCH 2026

## Production Linked Incentive Scheme

## †3543. Smt. Geniben Nagaji Thakor:

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

- (a)  whether  the  Government  has  launched  a  Production  Linked  Incentive  (PLI)  Scheme  to promote the Chemical Industry and the Bulk Drugs/Active Pharmaceutical Ingredients (API) sector;
- (b) if so, the details thereof along with the total number of projects approved under the said scheme so far;
- (c) the impact of the said scheme on domestic production and employment generation in the country; and
- (d)  the  details  of  the  future  plans  proposed  by  the  Government  to  achieve  the  goals  of Atmanirbhar Bharat in these sectors?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS  AND FERTILIZERS

## (SMT. ANUPRIYA PATEL)

(a) to (c): The Government has approved the 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 (commonly known as ' PLI Scheme for Bulk Drugs '), with a total budgetary outlay of ₹6,940 crore and scheme tenure from FY2022-23 to FY2028-29. The Scheme aims to boost domestic manufacturing of 41  identified  critical  products,  reduce  import  dependence  and  mitigate  supply  chain  risks arising from excessive reliance on a single source.

Out of 41 notified products, 33 have been subscribed and 48 greenfield projects have been approved with committed investment of ₹4,329.95 crore. Against this commitment, actual investment of ₹4,814.1 crore has already been completed. As of December 2025, 38 projects covering 28 notified products have been commissioned, resulting in establishment of domestic manufacturing capacity of approximately 56,800 MT per annum and employment generation for 4,896 persons till December, 2025.

(d):  With a view to strengthening the domestic biopharmaceutical sector and enhancing global competitiveness in biologics and biosimilars, the Government has announced the Biopharma SHAKTI scheme with an outlay of ₹10,000 crore over five years with an objective to build a globally competitive domestic ecosystem for biologics and biosimilars to support affordable healthcare  in  India  and  enable  India  to  emerge  as  a  global  biopharma  manufacturing  and innovation  hub.  Biopharma  SHAKTI  initiative  aims  to  support  domestic  development  and manufacturing of high-value biopharmaceutical products, medicines, reduce import dependence, and enhance India's competitiveness in global biologics supply chain.

Besides  above,  the  Department  of  Chemicals  and  Petrochemicals has  been  taking various measures to achieve the goals of Atmanirbhar Bharat in the sector, which are as under:

- i. Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR): To attract investments in chemicals & petrochemicals sector, Department had notified the Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) Policy. PCPIRs are conceptualized as cluster-based model of Development with common infrastructure  and  support  services.  Three  PCPIRs  have  been  set  up  at  Dahej (Gujarat),  Vishakhapatnam-Kakinada  (Andhra  Pradesh)  and  Paradeep  (Odisha). Currently, 2,246 chemical units are functional in these PCPIRs having a cumulative investment of ₹3,49,192 crore and these regions have generated employment of 3.7 lakh persons.
- ii. Plastic Parks: The Department implements the Scheme for Setting up of Plastic Parks under the scheme of New Scheme of Petrochemicals. The scheme promotes setting up of need-based Plastic Parks with requisite state-of-the-art infrastructure and enabling common facilities. The objective is to consolidate and synergize the capacities of downstream plastic processing industry to help increase investment, production  and  export  in  the  sector  as  well  as  generate  employment.  Under  the Scheme, the Government of India provides grant funding up to 50% of the project cost  to  the  State  government  subject  to  a  ceiling  of  ₹40  crore  per  project.  In accordance with the Scheme Guidelines, 9 Plastic Parks have been approved so far and the same are at different levels of implementation.

In  addition  to  these  infrastructure-led  initiatives,  the  Department  has  also  undertaken  the following initiatives aimed at research and development and human resource development.

- i. Centre of Excellence (CoE): The Department of Chemicals and Petrochemicals has formulated a scheme on setting up of Centres of Excellence. The objective is to provide grant-in-aid to  educational  and  research  institutions  to  improve  existing technology and promote development of new applications of polymers and plastics.. Under the scheme, the Government of India provides financial support up to 50 per cent of the total project cost subject to an upper limit of ₹5 crore. So far, 18 CoEs have been approved under the Scheme.
- ii. Skilling  and  Human  Resource  Development  through  CIPET: The  Central Institute  of  Petrochemicals  Engineering  &  Technology  (CIPET)  is  a  technical education  institution  under  the  Department  of  Chemicals  &  Petrochemicals, engaged in skill development, technology support, as well as academic and research activities for the promotion of the petrochemical and allied industry in the country.

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