The Ministry of Chemicals and Fertilizers (“Ministry”) has, through a Gazette Notification dated 3rd March 2021, notified the Production Linked Incentive Scheme (PLI) for Pharmaceuticals.
Apart from the features mentioned in the trail mail, the Ministry has laid down the following information:
- Selection of participants: The applicants will be selected based on pre-defined objective criteria to assess their experience, capacity to grow in scale and innovate. The selection criteria shall be elaborated in the scheme guidelines.
- Eligibility for incentive: The selected participants in the scheme will be eligible for incentives on incremental sales of pharmaceutical goods based on yearly threshold criteria of minimum cumulative investment and minimum percentage growth in sales as mentioned in the Notification.
- Tenure of the Scheme: The duration of the scheme will be from FY 2020-21 to FY 2028- 29. This will include the period for processing of applications (FY 2020-21), optional gestation period of one year (FY 2021-22), incentive for 6 years and FY 2028-29 for disbursal of incentive for sales of FY 2027-28.
- Incentive Outlay: Total financial outlay of the scheme is Rs. 15,000 crore. The annual incentive outlay is estimated based on projected incremental sales of the identified pharmaceutical goods by the selected participants. The incentives will be paid for a maximum period of 6 years for each participant. Participants may avail of up to one-year gestation period from the date of approval.
- Incentive ceiling: Incentive per participant will be subject to ceilings which will be specified in the scheme guidelines.
- Approval and Disbursement Process: An initial application, complete in all aspects, will have to be submitted before the due date. Then, Acknowledgement will be issued after initial scrutiny of the application and the applicants will be appraised and considered for approval, based on predefined selection criteria. Then, The incentives shall be released to the selected participants under the scheme who meet the annual threshold criteria of minimum cumulative investment and minimum growth in sales and if disbursement claims are found to be in order. The incentive will be disbursed on incremental sales for a maximum period of 6 years for each participant and the progress in approval of applications and disbursal of incentive shall be monitored on an ongoing basis against the monitoring framework to be specified in the guidelines.
Source: Ministry of Chemicals and Fertilizers
