PLIKSMSAPI
Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India
5.9/10The objective of the Scheme is to attain self-reliance and reduce import dependence in critical KSMs/DIs/APIs. Under the Scheme, financial incentives shall be given based on threshold investment and domestic sales made by selected applicant for the eligible products.
States / UT: All India
Ministry / nodal: Ministry Of Chemicals And Fertilizers
Nodal department: Department Of Pharmaceuticals
Scheme for: Infra
Scheme profile
DBT (direct benefit transfer): No
Scheme open date: 2026-07-21
Categories: Business & Entrepreneurship
Sub-categories: Setting up / start-up / entrepreneurship, Credit Linked Subsidy
Target beneficiaries: Business Entity, Industries
Tags: Production Linked Incentive, PLI, Bulk Drugs, Pharmaceutical Manufacturing, Domestic Production, Greenfield Projects
Details
The scheme "Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India" by the Department of Pharmaceuticals, Ministry Of Chemicals And Fertilizers, Government of India aims to boost domestic manufacturing of identified Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) through providing financial incentives on incremental sales to manufacturers. The scheme focuses on 41 identified products covering critical APIs to reduce import dependence.
It is applicable only for greenfield projects and encourages large investments in the pharmaceutical sector.
Tenure of the Scheme: The tenure of the scheme is from FY 2020-21 to FY 2029-30.
Base Year: Financial Year 2019-20.
Financial Outlay: Total financial outlay of the scheme is Rs. 6,940 crore.
Basis of Computation: Assessment of threshold investment and sales of manufactured products shall be based on details furnished to the Departments/Ministries/Agencies and Statutory Auditor certificates.
Project Management Agency: The scheme is implemented through a Nodal Agency, namely Industrial Finance Corporation of India (IFCI), which acts as the Project Management Agency (PMA).
Benefits
- Financial Incentive on Sales:
- Incentive is provided on sales of 41 identified products for 6 years. Target Segments:
- Four Target Segments covering 41 products are listed in Annexure B. For Fermentation-Based Products:
- 20% incentive from FY 2023-24 to FY 2026-27 15% incentive in FY 2027-28 5% incentive in FY 2028-29. For Chemical Synthesis-Based Products:
- 10% incentive from FY 2022-23 to FY 2027-28. Coverage of Products:
- Incentives applicable for 41 products covering 53 critical APIs
Financial Incentive on Sales:
- Incentive is provided on sales of 41 identified products for 6 years.
Target Segments:
- Four Target Segments covering 41 products are listed in Annexure B.
For Fermentation-Based Products:
- 20% incentive from FY 2023-24 to FY 2026-27.
- 15% incentive in FY 2027-28.
- 5% incentive in FY 2028-29.
For Chemical Synthesis-Based Products:
- 10% incentive from FY 2022-23 to FY 2027-28.
Coverage of Products:
- Incentives applicable for 41 products covering 53 critical APIs.
Eligibility
Applicability: The scheme is applicable only for greenfield projects.
Eligibility
- Support under the scheme shall be provided only to manufacturers of critical KSMs/DIs and APIs registered in India.
- Eligibility shall be subject to threshold investment in green field projects as given in the below-table.
- Eligibility under the scheme shall not affect eligibility under any other scheme and vice-versa.
Eligibility Threshold Criteria:
S. NoSegmentThreshold Investment1.Fermentation based 04 KSMs /Drug Intermediates₹400,00,00,000/-2.Fermentation based 10 niche KSMs / Drug Intermediates / APIs₹50,00,00,000/-3.Key Chemical Synthesis based 04 KSMs /Drug Intermediates₹50,00,00,000/-4.Other 23 Chemical Synthesis based KSMs / Drug Intermediates / APIs₹20,00,00,000/-
How useful is this scheme?
A practical look at this scheme for citizens
AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.
- Accessibility5.0
- Financial impact6.0
- Rural utility4.0
- Awareness7.5
- Simplicity7.0
- Inclusivity5.0
What problem does this scheme solve?
The scheme aims to enhance domestic manufacturing in the pharmaceutical sector, providing financial incentives to eligible manufacturers.
Key challenges addressed
- Reduces import dependence on critical pharmaceutical ingredients
- Encourages local production and investment in the pharmaceutical sector
Most beneficial for
- Manufacturers of critical KSMs, DIs, and APIs
- Investors in greenfield pharmaceutical projects
Likely challenges
- High threshold investment requirements
- Complex application process for first-time applicants
Practical insights for citizens
The scheme is practical for established manufacturers but may be challenging for new entrants and small businesses.
Rural challenges
- Limited access to online resources
- High investment threshold may exclude rural manufacturers
Digital challenges
- Dependence on digital platforms for application
- Limited internet access in rural areas
Implementation bottlenecks
- Complex eligibility criteria
- Need for statutory auditor certificates
Awareness challenges
- Low awareness among small manufacturers
- Limited outreach in rural areas
Application analysis
- Application mode
- Online
- Documents burden
- Low
- Verification complexity
- Moderate
- Office dependency
- None
- DBT dependency
- None
- CSC support
- Limited
- Estimated citizen effort
- High due to online application and fee payment
Estimated beneficiary reach
Benefit analysis
- Benefit type
- Cash
- Benefit frequency
- One-time based on sales
- Benefit practicality
- High for eligible manufacturers
- Financial meaningfulness
- Very high due to significant financial incentives
- Long-term impact
- Positive impact on domestic manufacturing and self-reliance in pharmaceuticals
Plain-language guidance
This scheme helps manufacturers in India get financial support for producing important pharmaceutical ingredients. It is aimed at boosting local production and reducing reliance on imports.
- Who should apply
- Manufacturers of critical pharmaceutical ingredients registered in India.
- Who may struggle
- Small manufacturers and first-time applicants due to high investment and complex application process.
- Best application route
- Apply online through the official portal.
This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.
Application Process
Online
- The eligible applicants may apply through online mode only. The link is: https://plibulkdrugs.ifciltd.com/login
Contact: Click here.
- Application Fee under the Scheme:
**S. No.Name of the Eligible ProductApplication Fee**1.Penicillin G, 7-ACA, Erythromycin Thiocynate (TIOC), Clavulanic Acid₹1,00,000/-2.All other eligible products₹50,000/-
- Application Fee will be paid electronically through NEFT / RTGS to the bank account as per details given hereunder:
Bank Account Name : IFCI – PLI – Bulk Drugs
Account Number : 3859475896
Name of the Bank : Central Bank of India
IFSC Code : CBIN0281410
Branch Code : 1410
Branch Name : Nehru Place
Bank Address : Central Bank of India, 59, Shakuntala Building, Nehru Place, New Delhi - 110019
Clarifications
Additional points from the scheme information published on myScheme (not legal advice).
- What is the objective of this scheme?
The scheme aims to promote domestic manufacturing of critical Key Starting Materials (KSMs), Drug Intermediates, and Active Pharmaceutical Ingredients (APIs) to reduce import dependence.
- Who implements the scheme?
The scheme is implemented through a Nodal Agency, namely Industrial Finance Corporation of India (IFCI), which acts as the Project Management Agency (PMA).
- Who is eligible to apply under the scheme?
Any manufacturer registered in India engaged in manufacturing eligible KSMs, Drug Intermediates, or APIs can apply under the scheme.
- What is the duration of the scheme?
The scheme operates from FY 2020-21 to FY 2029-30.
- How are incentives provided under the scheme?
Incentives are provided based on the sales of eligible products manufactured by selected applicants.
- What is the incentive rate for fermentation-based products?
The incentive rate is 20% for initial years, followed by 15% and then 5% in later years as per the scheme timeline.
- What is the incentive rate for chemical synthesis-based products?
The incentive rate is 10% for the specified period under the scheme.
- What is the application fee under the scheme?
The application fee is ₹1,00,000/- for certain specified products and ₹50,000/- for all other eligible products.
- How is the application fee paid?
The application fee is paid electronically through NEFT or RTGS to the designated bank account.
- Who evaluates the applications submitted under the scheme?
The Project Management Agency evaluates the applications and verifies eligibility.
- Who approves the applications and disbursement of incentives?
The Empowered Committee approves eligible applications and the disbursement of incentives.
Official links
References
- Gazette Notification
- https://plibulkdrugs.ifciltd.com/docs/Gazettee%20notification%20of%20bulk%20drug%20schemes.pdf
- Scheme Guidelines
- https://plibulkdrugs.ifciltd.com/docs/BD%20Guidelines.pdf
- Official Website
- https://plibulkdrugs.ifciltd.com/
Apply
Apply nowOpens the official application or programme portal in a new tab. If in doubt, confirm details on the ministry site.
Frequently asked questions
- What is the purpose of Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India?
- Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India is a government welfare initiative designed to support Infra, Business Entity, Industries through benefits related to Business & Entrepreneurship, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
- Who can apply for Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India?
- Eligibility for Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
- What benefits are offered under Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India?
- Benefits under Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
- Which department manages Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India?
- Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India is managed by Department Of Pharmaceuticals and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
- Can users apply online for Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India?
- Yes, eligible applicants may be able to apply online for Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India through official government portals, authorised service centres, or digital application systems depending on the implementation process.
- Is Aadhaar mandatory for Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India?
- Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
- Where can users apply for Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India?
- Applications for Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
- What documents may be required for Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India?
- Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
- Is Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India a central government scheme?
- Yes, Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.
- Does Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India provide business loan or startup assistance?
- Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.
- Is collateral required under Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India?
- Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.
- Can CSC centres help users apply for Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India?
- Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
- How can users check the latest updates for Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India?
- Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
- Are there deadlines for applying to Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India?
- Some schemes may operate through fixed application windows, annual registration cycles, or department-specific deadlines depending on scheme implementation policies.
- Can beneficiaries track application status for Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India?
- Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
- Where can users get help for Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India in All India?
- Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
- Which nearby public services may help with Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India applications?
- Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.