: Big PLI support for local manufacturing of Active Pharmaceutical Ingredients, 33 applications approved #FinanceIndia #StockMarketNEWS Big PLI support for local manufacturing of Active Pharmaceutical

@StockMarketNEWS Fri 12 Mar, 2021

Posted in: #FinanceIndia #StockMarketNEWS

Big PLI support for local manufacturing of Active Pharmaceutical Ingredients, 33 applications approved #FinanceIndia #StockMarketNEWS
Big PLI support for local manufacturing of Active Pharmaceutical Ingredients, 33 applications approved New Delhi, Mar 12 (KNN) The government has approved a total of 33 applications with a committed investment of Rs 5,082. 65 crore under theProduction Linked Incentive (PLI) scheme for Active Pharmaceutical Ingredients (APIs).

According to the Chemicals and Fertilisers Ministry the setting of these plants will make the country self-reliant with respect to these bulk drugs.

The disbursal of PLI by the government over six years will be up to a maximum of Rs 5,440 crore, the ministry said on Thursday.

With an objective to attain self-reliance and reduce import dependence in these critical Bulk Drugs - Key Starting Materials (KSMs)/ Drug Intermediates and Active Pharmaceutical Ingredients (APIs) in the country, the Department of Pharmaceuticals had launched a Production Linked Incentive (PLI) Scheme for promotion of their domestic manufacturing by setting up Greenfield plants with minimum domestic value addition in four different Target Segments (In Two Fermentation based - at least 90 per cent and in the Two Chemical Synthesis based – at least 70 per cent ) with a total outlay of Rs 6,940 crore for the period 2020-21 to 2029-30.

A total of 215 applications have been received for 36 products spread across the four target segments. Nineteen applications with a committed investment of Rs 4,623. 01 crore have already been approved under target segments I, II, and III.

Besides, 174 applications were received for 23 products under target segment IV -- other chemical synthesis-based KSMs or drug intermediates or APIs.

79 of them received for 11 eligible products were considered as per the decided evaluation and selection criteria.

Applications of 14 companies that have committed minimum/more than the minimum proposed annual production capacities and fulfil the prescribed criteria have been approved, the ministry said.

The setting up of these plants will lead to investment worth Rs 459. 47 crore and employment generation of 3,715. The production is projected to start fr0m April 1, 2023, onwards.

The government has also decided to take up the remaining 95 applications under the Target Segment-IV till March 31 for scrutiny and approval.

The Indian pharmaceutical industry is the 3rd largest in the world by volume. It has high market presence in several advanced economies such as the US and EU. The industry is well known for its production of affordable medicines, particularly in the generics space. However the country is significantly dependent on the import of basic raw materials, viz. , Bulk Drugs that are used to produce medicines. In some specific bulk drugs, the import dependence is 80 to 100 per cent.