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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

PLIKSMSAPI

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Revised Official listing text, not yet reviewedHow entries are compiled

Program brief

Form of supportCash, paid into the bank account
LevelCentral
Run byMinistry Of Chemicals And Fertilizers, Department Of Pharmaceuticals
FieldBusiness & Entrepreneurship
Started2026
How to applyOnline
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Contents of this entry
  1. Overview
  2. Benefits
  3. Eligibility
  4. Documents
  5. Application steps
  6. Questions and answers

Overview

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

The objective of the Scheme is to attain self-reliance and reduce import dependence in critical KSMs/DIs/APIs. Under the Scheme, financial incentives shall be given based on threshold investment and domestic sales made by selected applicant for the eligible products.

The scheme "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" by the Department of Pharmaceuticals, Ministry Of Chemicals And Fertilizers, Government of India aims to boost domestic manufacturing of identified Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) through providing financial incentives on incremental sales to manufacturers. The scheme focuses on 41 identified products covering critical APIs to reduce import dependence.

It is applicable only for greenfield projects and encourages large investments in the pharmaceutical sector.

  • Tenure of the Scheme: The tenure of the scheme is from FY 2020-21 to FY 2029-30.
  • Base Year: Financial Year 2019-20.
  • Financial Outlay: Total financial outlay of the scheme is Rs. 6,940 crore.
  • Basis of Computation: Assessment of threshold investment and sales of manufactured products shall be based on details furnished to the Departments/Ministries/Agencies and Statutory Auditor certificates.
  • Project Management Agency: The scheme is implemented through a Nodal Agency, namely Industrial Finance Corporation of India (IFCI), which acts as the Project Management Agency (PMA).

Further facts from the listing

Scheme typeCentral Sector Scheme
Scheme forInfra
DBT (direct bank transfer)No

Benefits

Financial Incentive on Sales:

  • Incentive is provided on sales of 41 identified products for 6 years.

Target Segments:

  • Four Target Segments covering 41 products are listed in Annexure B.

For Fermentation-Based Products:

  • 20% incentive from FY 2023-24 to FY 2026-27.
  • 15% incentive in FY 2027-28.
  • 5% incentive in FY 2028-29.

For Chemical Synthesis-Based Products:

  • 10% incentive from FY 2022-23 to FY 2027-28.

Coverage of Products:

  • Incentives applicable for 41 products covering 53 critical APIs.

Eligibility

Age
18 to 80 years
  • Applicability: The scheme is applicable only for greenfield projects.
  • Eligibility
  1. Support under the scheme shall be provided only to manufacturers of critical KSMs/DIs and APIs registered in India.
  2. Eligibility shall be subject to threshold investment in green field projects as given in the below-table.
  3. Eligibility under the scheme shall not affect eligibility under any other scheme and vice-versa.

Eligibility Threshold Criteria:

S. NoSegmentThreshold Investment
1.Fermentation based 04 KSMs /Drug IntermediatesRs. 400,00,00,000/-
2.Fermentation based 10 niche KSMs / Drug Intermediates / APIsRs. 50,00,00,000/-
3.Key Chemical Synthesis based 04 KSMs /Drug IntermediatesRs. 50,00,00,000/-
4.Other 23 Chemical Synthesis based KSMs / Drug Intermediates / APIsRs. 20,00,00,000/-

Who cannot apply

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Documents

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Application steps

Online

Contact: Click here.

  • Application Fee under the Scheme:
S. No.Name of the Eligible ProductApplication Fee
1.Penicillin G, 7-ACA, Erythromycin Thiocynate (TIOC), Clavulanic AcidRs. 1,00,000/-
2.All other eligible productsRs. 50,000/-
  • Application Fee will be paid electronically through NEFT / RTGS to the bank account as per details given hereunder:

Bank Account Name : IFCI – PLI – Bulk Drugs

Account Number : 3859475896

Name of the Bank : Central Bank of India

IFSC Code : CBIN0281410

Branch Code : 1410

Branch Name : Nehru Place

Bank Address : Central Bank of India, 59, Shakuntala Building, Nehru Place, New Delhi - 110019

Questions and answers

What is the objective of this scheme?

The scheme aims to promote domestic manufacturing of critical Key Starting Materials (KSMs), Drug Intermediates, and Active Pharmaceutical Ingredients (APIs) to reduce import dependence.

Who implements the scheme?

The scheme is implemented through a Nodal Agency, namely Industrial Finance Corporation of India (IFCI), which acts as the Project Management Agency (PMA).

Who is eligible to apply under the scheme?

Any manufacturer registered in India engaged in manufacturing eligible KSMs, Drug Intermediates, or APIs can apply under the scheme.

What is the duration of the scheme?

The scheme operates from FY 2020-21 to FY 2029-30.

How are incentives provided under the scheme?

Incentives are provided based on the sales of eligible products manufactured by selected applicants.

What is the incentive rate for fermentation-based products?

The incentive rate is 20% for initial years, followed by 15% and then 5% in later years as per the scheme timeline.

What is the incentive rate for chemical synthesis-based products?

The incentive rate is 10% for the specified period under the scheme.

What is the application fee under the scheme?

The application fee is Rs. 1,00,000/- for certain specified products and Rs. 50,000/- for all other eligible products.

How is the application fee paid?

The application fee is paid electronically through NEFT or RTGS to the designated bank account.

Who evaluates the applications submitted under the scheme?

The Project Management Agency evaluates the applications and verifies eligibility.

Who approves the applications and disbursement of incentives?

The Empowered Committee approves eligible applications and the disbursement of incentives.

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