PLI Scheme for Pharmaceutical Industry

• To enhance India’s manufacturing capabilities by increasing investment and production in the sector
• To create global champions out of India to penetrate the global value chains
• ₹15,000 Crores outlay is targeted under this scheme

The incentive is given

• If minimum incremental sale target is achieved, and 
• Is subject to the maximum limit as per ceiling. 
• These incentive rates are independent for every tax period. In case target is not met for any tax period, incentive would not be given only for that period.

• Global Manufacturing Revenue (FY 2019-20)

  Group	Global Manufacturing Revenue of pharmaceutical goods (FY 2019-20)	Maximum Incentive	Maximum Applicants to be selected
  A	>= ₹5000 Crore	₹ 11,000 Crore	11 (Max 4 Foreign MNCs)
  B	>= ₹500 Crore – < ₹5000 Crore	₹   2,250 Crore (Can be moved to Group A, if left unutilized)	9 (Max 3 Foreign MNCs)
  C	< ₹500 Crore (Includes MSME Sector as well)	₹   1,750 Crore	35 (Min 20 MSMEs) (Min 5 in vitro diagnostic medical devices)

• Revenues from any other source for instance R&D services, rental incomes, etc., shall be excluded for calculating the GMR.

• Investment to be made on or after 01.04.2020.
  • ₹50 Crores by MSME and ₹250 Cr – ₹1000 Crores by others 
  • Date of tax invoice would be considered as date of investment 
  • Cost not included
    • Expenditure on guest house building, recreational facilities, office building, residential colonies and similar structures
    • Second hand/used/ refurbished plant, machinery, equipment, utilities or Research and Development equipment
    • Consumables and raw materials used for manufacturing
  • Cost included
    • Plant, machinery, equipment and associated utility
    • Research & Development
    • Transfer of Technology Agreements
    • Product registration
    • Expenditure on construction of Building where new P&M is installed
      • Associated infrastructure cost restricted to 20% of investment in P&M
• Investment details are to be certified by statutory auditor or independent CA, as per details given in the scheme guidelines
• Schedule of investment

  Year	Group A		Group B		Group C
  	Cumulative Investment (in Crores)	Sales	Cumulative Investment (in Crores)	Sales	Cumulative Investment (in Crores)		Sales
  						MSME
  2021-22	200		50		10	20%
  2022-23	400	> 50 Cr	100	> 10 Cr	20	40%	> 1 Cr > 0.50 Cr (MSME)
  2023-24	600	7% high	150	7% high	30	60%	7% high
  2024-25	800	7% high	200	7% high	40	80%	7% high
  2025-26	1000	7% high	250	7% high	50	100%	7% high
  2026-27		7% high		7% high			7% high
  2027-28		7% high		7% high			7% high

• Submit application to Project Management Agency (PMA) through portal https://pli- pharma.udyamimitra.in    
• Non-refundable application fee to be paid electronically as per details given below:
  

  Group A	₹ 1,00,000
  Group B	₹ 50,000
  Group C	₹ 25,000
  Group C – MSME	₹ 10,000

• Application is to be submitted from 02nd June 2021 to 31st July 2021.
• Undertaking in prescribed format is to be submitted.
• PMA acknowledges and approves the application within a period of 90 days from last date.
• Certificate of investment made in India as on 31.03.2021 is required from Statutory Auditor or independent CA, as specified in the scheme guidelines

• Gross Manufacturing Investment (GMI) to be taken into consideration.
  

  Selection parameter	Group A/B	Group C	Group C (MSME)	Group A/B/C
  GMI (from 2010-11 to 2019-20)	30%	30%	—	30%
  Number of ANDA/NDA of applicant/group company as on 01.04.2021	30%	30%	—	30%
  R&D Expenditure of applicant / group company as a % of GMR from pharmaceutical drugs in 2017-18 to 2019-20	40%	—	—	—
  GMR from pharmaceutical drugs in 2019-20	—	40%	—	—
  Number of pharmaceutical plants in India owned by applicant / group company and approved	—	—	50%	—
  Total committed investment	—	—	50%	—
  GMR from in vitro diagnostic medical devices in FY 2019-20				40%

• In Group A, priority given to those applicants who commits higher amount of R&D Expenditure; in Group B to those who has higher GMR in 2019-20
• Higher ‘Global Manufacturing Revenue’ is also to be considered in case of in-vitro diagnostic medical devices.
• Selected applicant has to submit a bank guarantee.

PLI Scheme for Pharmaceuticals