Least Investment Restriction Removed by Govt Under PLI Scheme

PLI scheme for bulk drugs production

The administration on Thursday amended rules for its Production Linked Incentive (PLI) conspire for drug fixings and clinical gadget creators by eliminating the qualification rule of least investment and supplanting it with a guarantee to spend in increasing up limit.

The government also took measures to make these products entitled to exports. Earlier the sale of these products was limited to the domestic market but now with the introduction of new provisions, these are eligible for sale in foreign markets.

PLI scheme for bulk drugs production

The DoP ( Department of Pharmaceutical) who is executing the organization of these plans stated that, as investment differs from technology and products to reach a certain production level, these changes will encourage efficient use of productive capital.

In the following products the production level was changed:


Para Ameno Phenal (PAP)







Ciprofloxacin and


The government was planning in recent times to extend the date for the companies seeking to participate in the scheme. They also made clear about removing minimum investment restrictions. The deadline was extended from 23 November to 30 November for applications.

More than 80 percent of products are being imported in the field of medicinal devices. The main objective is to improve India’s efficiency in the production of these devices. PLI scheme of Rs. 6,940 crore is vital for India’s drug security. India’s dependence on foreign countries especially, China, for raw materials will also be controlled by the introduction of these schemes.

At the point when the plans were reported in July, the administration had set a base investment cutoff of ₹400 crores for organizations to profit benefits for setting up a unit to produce four maturation based mass medications, including Penicillin G and erythromycin thiocyanate. It had additionally set venture cutoff investment of ₹20-50 crore to profit benefits for setting up assembling units of 37 other mass medications.

Mass medication and medicinal device makers had grumbled that the plans were excessively prohibitive. DoP had gotten a few recommendations and contributions from the drug and medical device industry looking for specific changes in the plan to empower successful investment of the business in the two plans. The proposals were inspected by the technical teams which were formed under these schemes.

Amitabh Kant, CEO of NITI Aayog, reviewed these recommendations and suggestions placed by these teams and later approved these changes.


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