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Approval accorded under Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates and Active Pharmaceutical Ingredients (APIs) in the country

IBEF:  March 01, 2021

With an objective to attain self-reliance and reduce import dependence in these critical Bulk Drugs - Key Starting Materials (KSMs)/ Drug Intermediates and Active Pharmaceutical Ingredients (APIs) in the country, the Department of Pharmaceuticals had launched a Production Linked Incentive (PLI) Scheme for promotion of their domestic manufacturing by setting up greenfield plants with minimum domestic value addition in four different Target Segments (In Two Fermentation based - at least 90% and in the Two Chemical Synthesis based – at least 70% ) with a total outlay of Rs. 6,940 crore (US$ 951.27 million) for the period 2020-21 to 2029-30.

 

The applications under four different Target Segments were invited with 30th November 2020 as the last date. In total, 215 applications have been received for the 36 products spread across the 4 Target Segments. The guidelines prescribed that the applications would be processed and decided within a period of 90 days, i.e., up to 28th February 2021. Five applications with a committed investment of Rs. 3,761 crore (US$ 515.52 million) have already been approved under Target Segment I.

Eligible products under Target Segment II (Fermentation Based Niche KSMs/Drug Intermediates/APIs) were considered as per the decided evaluation and selection criteria. The applications of following companies, which have committed minimum/more than the minimum proposed annual production capacities and fulfil the prescribed criteria have been approved, as under:

Sl.No.

Name of approved Applicant

Name of Eligible Product

Committed Production Capacity

(in MT)

Committed Investment

(in Rs. crore)

Committed Investment

(in US$ million)

1.

M/s Natural Biogenex Private Limited

Betamethasone

12

31.43

4.31

2.

M/s Natural Biogenex Private Limited

Dexamethasone

10

26.19

3.59

3.

M/s Natural Biogenex Private Limited

Prednisolone

15

39.29

5.39

4.

M/s Symbiotec Pharmalab Private Limited

15

5.00

0.69

5.

M/s Macleods Pharmaceutical Limited

Rifampicin

200

198.36

27.19

6.

M/s Optimus Drugs Private Limited

Vitamin B1

200

35.00

4.80

7.

M/s Sudarshan Pharma Industries Limited

200

57.00

7.81

8.

M/s Optimus Drugs Private Limited

Streptomycin

50

30.00

4.11

Eligible products under Target Segment III (Key Chemical Synthesis Based KSMs/Drug Intermediates) were considered as per the decided evaluation and selection criteria. The applications of following companies, which have committed minimum/more than the minimum proposed annual production capacities and fulfil the prescribed criteria have been approved, as under:

Sl.No.

Name of approved Applicant

Name of Eligible Product

Committed Production Capacity

(in MT)

Committed Investment

(in Rs. crore)

Committed Investment

(in US$ million)

1.

M/s Saraca Laboratories Limited

 1,1 Cyclohexane Diacetic Acid (CDA)

3000

50.00

6.85

2.

M/s EmmennarPharma Private Limited

Dexamethasone

1500

21.94

3.01

3.

M/s Hindys Lab Private Limited

Prednisolone

3000

37.60

5.15

4.

M/s AartiSpeciality Chemicals Limited

2-Methyl-5Nitro-Imidazole (2-MNI)

4000

77.87

10.67

5.

M/s Meghmani LLP

Para amino phenol

13500

55.06

7.55

6.

M/s Sadhana Nitro Chem Limited*

Vitamin B1

36000

197.27

27.04

 *Subject to outcome of Writ Petition.

The setting up of these plants will lead to total committed investment of Rs. 862.01 crore (US$ 118.16 million) by the companies and employment generation of about 1763. With this, a total of 19 applications with committed investment of Rs. 4623.01 crore (US$ 633.68 million) have been approved by the Government. The commercial production is projected to commence from 1st April, 2023 onwards and the disbursal of production linked incentive by the Government over the six years period would be up to a maximum of Rs.4,870 cr. Setting of these plants will make the country self-reliant to a large extent in respect of these Bulk drugs. Further, applications under the Target Segment-IV are proposed to be taken up for approval before 28th February 2021.

The Indian pharmaceutical industry is the 3rd largest in the world by volume. It has high market presence in several advanced economies such as the US and EU. The industry is well known for its production of affordable medicines, particularly in the generics space. However, the country is significantly dependent on the import of basic raw materials, viz., Bulk Drugs that are used to produce medicines. In some specific bulk drugs, the import dependence is 80 to 100%.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.