Sarkari Yojana
Production Linked Incentive (PLI) Scheme for Pharmaceuticals
About Production Linked Incentive (PLI) Scheme for Pharmaceuticals
The Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, launched the “Production Linked Incentive (PLI) Scheme for Pharmaceuticals” to lift India’s manufacturing capability by driving investment and production in the sector and pushing product diversification toward high-value pharmaceutical goods. Selected applicants, chosen against pre-defined criteria, receive financial incentives on their incremental sales (over a Base Year) of pharmaceutical goods and in-vitro diagnostic medical devices. The Small Industries Development Bank of India implements the scheme, and applications are accepted online through the dedicated Project Management Agency portal.
Scheme Overview
Central Government
Ministry Of Chemicals And Fertilizers
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Production Linked Incentive (PLI) Scheme for Pharmaceuticals, applicants must satisfy the following conditions:
Common Eligibility
The applicant must be a manufacturer of pharmaceutical…
The applicant must be a manufacturer of pharmaceutical goods registered in India.
The applicant must manufacture eligible pharmaceutical products falling…
The applicant must manufacture eligible pharmaceutical products falling under one of the three defined categories.
The applicant cannot claim incentives for the same…
The applicant cannot claim incentives for the same product under both the Production Linked Incentive Scheme for Bulk Drugs and this or any other Production Linked Incentive Scheme. Group A Applicants
The applicant needs a Global Manufacturing Revenue of…
The applicant needs a Global Manufacturing Revenue of pharmaceutical goods or in-vitro Diagnostic Medical Devices greater than or equal to ₹50,00,00,00,000/- (₹5,000 crores) in Financial Year 2019-20.
The applicant must achieve a minimum cumulative investment…
The applicant must achieve a minimum cumulative investment of ₹10,00,00,00,000/- (₹1,000 crores) over a period of 5 years.
The applicant must achieve a minimum turnover of…
The applicant must achieve a minimum turnover of eligible products of ₹50,00,00,000/- (₹50 crores) in the first year (Financial Year 2022-23). Group B Applicants
The applicant needs a Global Manufacturing Revenue of…
The applicant needs a Global Manufacturing Revenue of pharmaceutical goods or in-vitro Diagnostic Medical Devices between ₹5,00,00,00,000/- (₹500 crores) and ₹50,00,00,00,000/- (₹5,000 crores) in Financial Year 2019-20.
The applicant must achieve a minimum cumulative investment…
The applicant must achieve a minimum cumulative investment of ₹2,50,00,00,000/- (₹250 crores) over a period of 5 years.
The applicant must achieve a minimum turnover of…
The applicant must achieve a minimum turnover of eligible products of ₹10,00,00,000/- (₹10 crores) in the first year (Financial Year 2022-23). Group C Applicants
The applicant needs a Global Manufacturing Revenue of…
The applicant needs a Global Manufacturing Revenue of pharmaceutical goods or in-vitro Diagnostic Medical Devices less than ₹5,00,00,00,000/- (₹500 crores) in Financial Year 2019-20.
The applicant must achieve a minimum cumulative investment…
The applicant must achieve a minimum cumulative investment of ₹50,00,00,000/- (₹50 crores) over a period of 5 years.
The applicant must achieve a minimum turnover of…
The applicant must achieve a minimum turnover of eligible products of ₹1,00,00,000/- (₹1 crore) in the first year (Financial Year 2022-23). Group C (MSME) Applicants
The applicant must fall under the Micro, Small…
The applicant must fall under the Micro, Small and Medium Enterprises (MSME) category within Group C.
The applicant must achieve the Committed Investment (total…
The applicant must achieve the Committed Investment (total eligible investment committed by the applicant) over a period of 5 years.
The applicant must achieve a minimum turnover of…
The applicant must achieve a minimum turnover of eligible products of ₹50,00,000/- (₹50 lakhs) in the first year (Financial Year 2022-23). Continuation Criteria
To claim incentives for subsequent years (Financial Year…
To claim incentives for subsequent years (Financial Year 2023-24 onwards), the applicant must achieve 7% growth in sales over the previous Financial Year.
Benefits Provided
Production Linked Incentive (PLI) Scheme for Pharmaceuticals provides the following benefits to eligible applicants:
The scheme carries a total financial outlay of…
The scheme carries a total financial outlay of ₹1,50,00,00,00,000/-.
Incentives are paid on the net incremental sales…
Incentives are paid on the net incremental sales of eligible products across a 6-year span (Financial Year 2022-23 to Financial Year 2027-28).
For Category 1 and Category 2 products, the…
For Category 1 and Category 2 products, the incentive rate stands at 10% for the first four years (Financial Year 2022-23 to 2025-26), drops to 8% in the fifth year (Financial Year 2026-27), and falls further to 6% in the sixth year (Financial Year 2027-28).
For Category 3 products, the incentive rate is…
For Category 3 products, the incentive rate is 5% for the first four years (Financial Year 2022-23 to 2025-26), 4% in the fifth year (Financial Year 2026-27), and 3% in the sixth year (Financial Year 2027-28).
Allocation ceilings for the incentive are set at…
Allocation ceilings for the incentive are set at ₹1,10,00,00,00,000/- for Group A, ₹22,50,00,00,000/- for Group B, and ₹17,50,00,00,000/- for Group C.
Per-applicant incentive is capped at ₹10,00,00,00,000/- for Group…
Per-applicant incentive is capped at ₹10,00,00,00,000/- for Group A, ₹2,50,00,00,000/- for Group B, and ₹50,00,00,000/- for Group C. Applicants need to file their incentive disbursement claim online each year, within one month of the financial year's close. Of the claim amount, 75% is disbursed immediately upon order, with the remaining 25% released once final audited accounts are submitted. Selected applicants must also submit a self-certified quarterly review report within 30 days of each quarter's end.
Documents Required
Applicants should keep the following documents ready before starting the application:
Audited Financial Statements showing the company's finances
Audited Financial Statements showing the company's finances.
A Cost Accountant Certificate, needed for Production Cost…
A Cost Accountant Certificate, needed for Production Cost Certification.
A Bank Guarantee, submitted upon selection
A Bank Guarantee, submitted upon selection.
An Undertaking, submitted upon selection
An Undertaking, submitted upon selection.
Documents relating to Product Registration
Documents relating to Product Registration.
A Self-Certified Quarterly Review Report
A Self-Certified Quarterly Review Report.
How to Apply
Online Application
Applicants can apply for Production Linked Incentive (PLI) Scheme for Pharmaceuticals through the online application process outlined below.
The Small Industries Development Bank of India, acting as the Project Management Agency, implements the scheme. Applicants must apply online through the designated portal.
Access the official online portal at https://pli-pharma.udyamimitra.in
Access the official online portal at https://pli-pharma.udyamimitra.in.
Register on the portal and complete the application…
Register on the portal and complete the application form with all required details on Global Manufacturing Revenue, investment commitments, and product categories.
Pay the non-refundable application fee prescribed in the…
Pay the non-refundable application fee prescribed in the guidelines.
The Project Management Agency processes applications and selects…
The Project Management Agency processes applications and selects applicants based on the ranking methodology, within 90 days of the application window's closure.
Selected applicants receive the approval letter from the…
Selected applicants receive the approval letter from the Project Management Agency.
Submit a Bank Guarantee of the prescribed amount…
Submit a Bank Guarantee of the prescribed amount and an Undertaking in favor of the Department of Pharmaceuticals within two weeks of the issuance of the approval letter.
Submit claims for incentive disbursement annually through the…
Submit claims for incentive disbursement annually through the online portal, along with supporting documents, within one month of the financial year's closure.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.