DoP Constitutes Panel For Pharmaceuticals PLI Scheme


New Delhi : The Department of Pharmaceuticals (DoP) has constituted a panel headed by the Secretary of the Department for selection of applicants and regular monitoring of the production linked incentive (PLI) scheme for pharmaceuticals.

The Department has issued an amendment to the operational guidelines of the Scheme, in this regard, adding the provisions for the Scheme Selection and Steering Committee (SSSC), for the purpose.

The amendment added the provisions for SSSC to the existing provisions for the Empowered Group of Secretaries (EGoS). The EGoS, as per the original guidelines issued on June 1, 2021, is to monitor the scheme, undertake periodic review of the outgo under the scheme, ensure uniformity with other PLI schemes and take appropriate action to ensure that the expenditure is within the prescribed outlay.

The SSSC is constituted for the selection of the applicants under the scheme and for regular monitoring of the progress of the implementation of the PLI scheme. The members of the committee, other than the Secretary, DoP who is the chairperson, include the additional secretary and financial advisor, joint secretary (Policy), joint secretary (NIPER), and the deputy secretary or director (policy), with DoP. The deputy secretary or director (Scheme), DoP, will be the convenor of the committee.

The committee may co-opt Drugs Controller General (India) or other officials as special invitees on need basis.

“The Committee is to review and monitor the implementation of the Scheme on a regular basis, meeting at least once in a quarter,” said the Department.

In February, the Department released the first tranche of incentives under the product linked incentive scheme of pharmaceuticals amounting to Rs. 166 crore to four selected applicants.

Under the Atmanirbhar Bharat initiative of the Government, DoP launched the PLI scheme for pharmaceuticals in 2021. The financial outlay under this PLI scheme is Rs. 15,000 crore over a period of six years. So far, 55 applicants have been selected under the scheme, including 20 micro, small & medium enterprises (MSMEs). The financial year of 2022-2023 being the first year of production for the PLI scheme, DoP has ear-marked Rs. 690 crore as the budget outlay.

The scheme is also expected to bring in investment of more than Rs. 17,000 crore in the pharmaceutical sector. The support to the pharma industry spans a breadth of product categories from cell and gene therapy to phyto-pharmaceuticals. The support under PLI schemes is expected to promote the production of high-value products in the country and increase the value addition in exports as well as generate employment for both skilled and unskilled personnel, estimated at 20,000 direct and 80,000 indirect jobs as a result of growth in the sector. Total incremental sales of Rs. 2,94,000 crore are estimated during six years from FY 2022-23 to 2027-28.


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