Bengaluru : A few questions have emerged in the much touted productivity linked incentive (PLI) scheme for the pharma industry. These include the issues like the quantum of the incentive to multinational companies to set up manufacturing facilities for high-value products and about how India can match China’s cost of manufacture and final product pricing which is 20-30% cheaper.
From the time imports from China were stalled, the PLI schemes I and II came as a relief for the industry but now a few hidden bottle necks have emerged, pointed out BR Sikri, chairman, lifescience committee, CII Northern region; VP, Bulk Drugs Manufacturers Association; and chairman, Federation of Pharma Entrepreneurs (FOPE).
Speaking at the Plenary Session V: Make in India for India and the world at the CII Life Sciences Conclave 2021, Sikri stated that PLI-I scheme focused on chemical synthesis and fermentation. While chemicals synthesis category was more or less accepted by the industry as per government expectation, those in the fermentation sector were less enthusiastic.
Other issues include availability of technology to speed up manufacturing, availability of power and tariffs. Unless the government hears out the top ten companies about their concerns, it will not be able to come out with a solution. Moreover, these issues cannot be resolved by simply issuing a notification but by approaching top companies barely numbering 7-8 to solve their problems, said Sikri.
The government can consider a joint venture with multinational companies having the technology and looking to invest in India. But the government is unable to assure investors about anti-dumping duties. Therefore, there is a need to work out modalities at the earliest to maximize the benefits of the PLI scheme, he noted.
In the case of the PLI II scheme, it has kept all eggs in one basket which is a risky proposition. Although the government has tried to give more than 71% of the share to top few companies but the MSMEs, which are backbone of the country’s economy, are left with hardly 11%.
Even as the Indian pharma industry faces challenges to succeed, it is resilient because companies are capable to taken on repurposing of drugs for new diseases and infections like Covid, SARS etc.
It will also focus on introduction of generic drugs like anti-cancer, anti-infective, anti-viral, bio generics and vaccines to prevent diseases. Further there is a huge opportunity for pharma companies to manufacture drugs going off patent in 2024 valued at over US$ 251 billion , said Sikri.
