Production Linked Incentive (PLI) Scheme for Pharmaceuticals
State: Central
Ministry: Ministry Of Chemicals And Fertilizers
Department: null
Category: Business & Entrepreneurship
Beneficiary Type: Business Entity

The scheme provides financial incentives on the incremental sales (over Base Year) of pharmaceutical goods and in-vitro diagnostic medical devices to selected applicants based on pre-defined selection criteria. The applicant must be a manufacturer of pharmaceutical goods.

Benefits:
- The scheme has a total financial outlay of ₹1,50,00,00,00,000/-.
- The incentive is provided on the net incremental sales of eligible products over a period of 6 years (Financial Year 2022-23 to Financial Year 2027-28).
- The rate of incentive for Category 1 and Category 2 products is 10% for the first four years (Financial Year 2022-23 to 2025-26), 8% for the fifth year (Financial Year 2026-27), and 6% for the sixth year (Financial Year 2027-28).
- The rate of incentive for Category 3 products is 5% for the first four years (Financial Year 2022-23 to 2025-26), 4% for the fifth year (Financial Year 2026-27), and 3% for the sixth year (Financial Year 2027-28).
- The incentive allocation ceiling is ₹1,10,00,00,00,000/- for Group A, ₹22,50,00,00,000/- for Group B, and ₹17,50,00,00,000/- for Group C.
- The maximum incentive per applicant is capped at ₹10,00,00,00,000/- for Group A, ₹2,50,00,00,000/- for Group B, and ₹50,00,00,000/- for Group C.

****Applicants must submit a claim for disbursement of incentive online on an annual basis within one month of the closure of the financial year.***
****75% of the claim amount is released immediately upon order, and the remaining 25% is released after the submission of final audited accounts.***
****Selected applicants must furnish a self-certified quarterly review report within 30 days from the end of each quarter.***
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Eligibility:
##### ***Common Eligibility***

- The applicant must be a manufacturer of pharmaceutical goods registered in India.
- The applicant must be engaged in the manufacturing of eligible pharmaceutical products covered under the three defined categories.
- The applicant must not claim incentives for the same product under the Production Linked Incentive Scheme for Bulk Drugs or any other Production Linked Incentive Scheme.

##### ***Group A Applicants***

- The applicant must have a Global Manufacturing Revenue of pharmaceutical goods or in-vitro Diagnostic Medical Devices greater than or equal to ₹50,00,00,00,000/- (₹5,000 crores) in the Financial Year 2019-20.
- The applicant must achieve a minimum cumulative investment of ₹10,00,00,00,000/- (₹1,000 crores) over a period of 5 years.
- The applicant must achieve a minimum turnover of eligible products of ₹50,00,00,000/- (₹50 crores) in the first year (Financial Year 2022-23).

##### ***Group B Applicants***

- The applicant must have a Global Manufacturing Revenue of pharmaceutical goods or in-vitro Diagnostic Medical Devices between ₹5,00,00,00,000/- (₹500 crores) and ₹50,00,00,00,000/- (₹5,000 crores) in the Financial Year 2019-20.
- The applicant must achieve a minimum cumulative investment of ₹2,50,00,00,000/- (₹250 crores) over a period of 5 years.
- The applicant must achieve a minimum turnover of eligible products of ₹10,00,00,000/- (₹10 crores) in the first year (Financial Year 2022-23).

##### ***Group C Applicants***

- The applicant must have a Global Manufacturing Revenue of pharmaceutical goods or in-vitro Diagnostic Medical Devices less than ₹5,00,00,00,000/- (₹500 crores) in the Financial Year 2019-20.
- The applicant must achieve a minimum cumulative investment of ₹50,00,00,000/- (₹50 crores) over a period of 5 years.
- The applicant must achieve a minimum turnover of eligible products of ₹1,00,00,000/- (₹1 crore) in the first year (Financial Year 2022-23).

##### ***Group C (MSME) Applicants***

- The applicant must fall under the Micro, Small and Medium Enterprises (MSME) category within Group C.
- The applicant must achieve the Committed Investment (total eligible investment committed by the applicant) over a period of 5 years.
- The applicant must achieve a minimum turnover of eligible products of ₹50,00,000/- (₹50 lakhs) in the first year (Financial Year 2022-23).

##### ***Continuation Criteria***

- The applicant must achieve a 7% growth in sales over the previous Financial Year for subsequent years (Financial Year 2023-24 onwards) to claim incentives.

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Application Process:
[Online]
The scheme is implemented through a Project Management Agency, which is the Small Industries Development Bank of India. Applicants must apply online through the designated portal.
Step 1: Access the official online portal at https://pli-pharma.udyamimitra.in.
Step 2: Register on the portal and fill out the application form with all required details regarding Global Manufacturing Revenue, investment commitments, and product categories.
Step 3: Submit the non-refundable application fee as prescribed in the guidelines.
Step 4: The Project Management Agency will process the applications and select applicants based on the ranking methodology within 90 days of the application window closure.
Step 5: Receive the approval letter from the Project Management Agency if selected. Step 6: Submit a Bank Guarantee of the prescribed amount and an Undertaking in favor of the Department of Pharmaceuticals within two weeks of the issuance of the approval letter.
Step 7: Submit claims for incentive disbursement annually through the online portal along with supporting documents within one month of the financial year's closure.

Documents Required:
Audited Financial Statements
Cost Accountant Certificate (For Production Cost Certification)
Bank Guarantee (Upon Selection)
Undertaking (Upon Selection)
Product Registration Documents
Self-Certified Quarterly Review Report