The Ministry of Chemicals and Fertilizers announced a significant achievement on Friday with the successful completion of 32 projects under the Production Linked Incentive (PLI) Scheme. This initiative is designed to bolster domestic production of critical Key Starting Materials (KSMs), Drug Intermediates, and Active Pharmaceutical Ingredients (APIs).
According to the Ministry’s press release, these completed projects collectively boast an installed capacity of 56,679 metric tons (MT) per annum. The initiative is expected to enhance India’s pharmaceutical supply chain and reduce reliance on imports.
The PLI Scheme, which was approved by the Cabinet with a financial outlay of Rs 6,940 crores, aims to boost domestic bulk drug production, strengthen supply chain resilience, and cut down on imported raw materials. The scheme’s production phase is scheduled to run from the fiscal year 2022-23 to 2028-29.
The scheme has seen a robust response, with 249 applications submitted. Out of these, 48 projects have been selected for the production of designated bulk drugs. Notably, 13 of these projects are being undertaken by 10 Micro, Small, and Medium Enterprises (MSMEs). The completion of 32 projects marks a significant milestone, with 16 more projects currently under development.
The ongoing projects are receiving support to secure necessary regulatory approvals, including environmental clearances and drug manufacturing licenses. The Ministry has highlighted the pivotal role of state governments in expediting these approvals to ensure timely project completion.
An impressive achievement under the PLI Scheme is the surpassing of the initial investment target. The scheme originally aimed for investments of Rs 3,938 crores, but actual investments have reached Rs 4,024 crores, reflecting strong industry confidence and a commitment to advancing India’s pharmaceutical manufacturing capabilities.
The distribution of approved projects across various states, as detailed in the attached annexure, underscores the geographic spread and impact of these investments nationwide.
The Ministry of Chemicals and Fertilizers reaffirmed its dedication to supporting the domestic pharmaceutical sector and advancing India’s self-reliance in drug manufacturing. The successful completion of these projects is expected to significantly contribute to India’s ambition of becoming a global pharmaceutical hub and ensuring the availability of essential drugs for domestic use.
This progress aligns with the government’s broader “Atmanirbhar Bharat” initiative, which aims to foster self-reliance in key sectors and reduce dependence on imports. The PLI Scheme for Pharmaceuticals is a cornerstone of this initiative, providing essential financial incentives and regulatory support to promote domestic manufacturing and innovation.
