NEW PLI SCHEME TO BOLSTER PHARMA SECTOR
NEW DELHI: The Union government has expanded its performance-linked incentive (PLI) scheme to the pharmaceutical sector, aiming to achieve selfsufficiency in output of drugs. Often called the pharmacy of the world, the country has struggled to keep up enough supplies of key drugs to treat Covid-19 infections, exacerbating a second wave in April and May that has since ebbed.
The window for applications from drug manufacturers for the scheme worth Rs 15000 crore opened on June 2 and will continue till July 31, an official of the the chemicals and fertilizers ministry, which oversees pharmaceuticals, said on condition of anonymity.
With massive production capacities, India is the world’s largest manufacturer of medicines and up to a third of medicines sold in the US originate in India. But even as it has built its expertise in formulations and so-called small molecules, the country has been content to stop manufacturing bulk drugs.
The pharma sector depends on China for up to 70% of its active pharmaceutical ingredients or APIs (or bulk drugs), the basic raw materials of all medicines. Supply disruptions due to Covid-19, lower inventory of raw materials and sharply higher demand during infections led to acute shortages of medicines during the second wave.
The PLI scheme offers eligible manufacturing companies and sectors a 4-10% incentive on incremental sales over the base year of 2019-20 for a five-year period.