Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices

The scheme “Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices” by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers aims to boost domestic manufacturing and attract large investments through providing financial incentives to companies engaged in manufacturing medical devices in India. The scheme provides incentives based on incremental sales over the base year and subject to threshold investment conditions. The scheme is applicable only for greenfield projects and is implemented through a Project Management Agency.

Target Segments:

Target Segment shall mean one of the four segments, viz.:

1. Cancer care / Radiotherapy medical devices
2. Radiology & Imaging medical devices (both ionizing & non-ionizing radiation products) and Nuclear Imaging devices
3. Anaesthetics & Cardio-Respiratory medical devices, Oxygen Concentrators, including Catheters of Cardio-Respiratory Category & Renal Care medical devices
4. All implants, including implantable electronic devices

• Tenure of the Scheme: Financial Year 2020-21 to Financial Year 2027-28.

• 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).

• Financial Incentive: 5% incentive on incremental sales of manufactured goods over the base year (FY 2019-20).

General Eligibility:

• The applicant must be a company registered in India.
• The applicant may also be registered as a Limited Liability Partnership (LLP).
• The applicant must be engaged in manufacturing of medical devices covered under target segments.
• The applicant must establish a greenfield project in India.
• The applicant must meet the threshold investment and incremental sales criteria.
• The applicant must fulfill all conditions specified for disbursement of incentives.

Threshold Conditions:

• The applicant must achieve minimum cumulative investment of ₹1,80,00,00,000 over 3 years.
• The applicant must achieve incremental sales as specified for each year.

Additional Conditions:

• The applicant must submit a complete application within the application window of 120 days.
• The applicant’s eligibility under this scheme does not affect eligibility under other schemes.

Target Segments of Medical Devices Eligible under the Scheme:

Target Segment No. Description of Medical Devices covered under the Target SegmentTarget Segment 1Cancer care/Radiotherapy medical devicesTarget Segment 2Radiology & Imaging medical devices (both ionizing & non-ionizing radiation products) and Nuclear Imaging DevicesTarget Segment 3Anaesthetics & Cardio-Respiratory medical devices, including Catheters of Cardio Respiratory Category & Renal Care Medical DevicesTarget Segment 4All Implants including implantable electronic devices like Cochlear Implants and Pacemakers> Note:

• A key component that constitutes a major part of a finished medical device (such as Rotating Anode Tube, Stationary Anode Tube, MRI Magnet, Flat Panel Detector, and similar components), and has a distinct HS code for itself, will be considered as included in the corresponding target segment.

Eligibility Threshold Criteria:

*Segment***Incentive Rate (on Incremental Sales of Manufactured Goods)Threshold Minimum InvestmentThreshold Minimum Incremental Sales of Manufactured Goods**All four segments of medical devices (detailed in Annexure A)Year 1: 5%; Year 2: 5%; Year 3: 5%; Year 4: 5%; Year 5: 5%INR 180 Crore over 3 Years; Cumulative Minimum (Crore): Year 1: 60; Year 2: 120; Year 3: 180Year 1: INR 120 Crore; Year 2: INR 240 Crore; Year 3: INR 360 Crore; Year 4: INR 460 Crore; Year 5: INR 560 Crore

Online

• The eligible applicants (Category-B applicants) may apply through online mode only. The link is: https:/plimedicaldevices.ifciltd.com/

Contact: Click here.

Offline

Step 1: The applicant must prepare the application with all required details.
Step 2: The applicant must submit the application within 120 days of the application window.
Step 3: The application is appraised by the Project Management Agency.
Step 4: Eligible applications are considered by the Empowered Committee for approval.
Step 5: Approved applicants submit claims for incentive disbursement.
Step 6: The incentive is released after verification of claims.