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Manufacturing of 35 drug raw materials begins under PLI scheme: Govt

A recent scheme announced for production-linked incentive scheme for bulk drugs is aimed at cutting India’s dependence on imports of active pharmaceutical ingredients from China.

March 29, 2022 / 07:46 PM IST

The Centre, on March 29, announced that of the 53 drug raw materials for which India was dependent on imports, 35 are now being manufactured in India.

“Under the production-linked incentive (PLI) scheme, 32 new plants for the production of APIs (Active Pharmaceutical Ingredients) have been set up and production has now started in 35 of the 53 identified APIs," said Mansukh Mandaviya, Union health and chemical and fertilisers minister.

India has a 90 percent dependence on 35 APIs, which used to be imported earlier. However, India has now started manufacturing these APIs under the PLI scheme, the minister said.

“Under the scheme, the government is providing viability gap funding to reduce dependence on imports.”

Over 65 percent of India’s API imports come from China.

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‘Good response to PLI scheme for bulk drugs’

The government said in the parliament that in total, 239 applications have been received for the 36 products spread across the 4 target segments for the production-linked incentive schemes for bulk drugs from all over the country in two rounds of applications.

Out of these, 49 applications have been approved by the government till date.

“The government promoted the scheme by holding meetings with the industry associations, manufacturers & investors,” said a statement by the department of pharmaceuticals under the ministry of chemicals and fertilisers.

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It also held interactions with a number of state governments as well as foreign embassies. The statement also added that the guidelines of the scheme were also uploaded on the department’s website for wider dissemination.

The selected 49 applications are from 33 companies, out of which, 13 are Micro, Small and Medium Enterprises (MSMEs), besides some newly incorporated entities.

The scheme provides for minimum domestic value addition to be achieved by each approved applicant.

“Thus, these large number of projects approved under the scheme will also accelerate domestic procurement, which will further strengthen the eco system and marketplace for MSME sector,” the government has said.

Sumi Sukanya Dutta
Sumi Sukanya Dutta
first published: Mar 29, 2022 07:43 pm