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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

Ministry: Ministry Of Chemicals And Fertilizers

Department: Department Of Pharmaceuticals

The 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.

Start date21 Jul 2026
Last verified7 days ago
Source: myScheme.gov.in ↗Last verified: 28 Sept 2026·YojnaGuru is not affiliated with or endorsed by any government body

About This Scheme

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.

Eligibility

Note: You may be eligible based on the information shown. Please verify the official eligibility requirements before applying.
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    Applicability: The scheme is applicable only for greenfield projects.

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    Eligibility

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    Support under the scheme shall be provided only to manufacturers of critical KSMs/DIs and APIs registered in India.

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    Eligibility shall be subject to threshold investment in green field projects as given in the below-table.

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    Eligibility under the scheme shall not affect eligibility under any other scheme and vice-versa.

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    > Eligibility Threshold Criteria:

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    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/-<br>

Required Documents

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    Constitution of Business: Copy of the memorandum and articles of association or equivalent registration document, Partnership Deed and any equivalent document. Shareholding pattern, share of the partners as the case may be. 1. Business Details:
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    Self-certified copies of PAN, GST Certificate for applicant.
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    Self-certified copies of brief profile of Chairman, CEO, CXOs, Promoter and Key Managerial Persons along with their PAN / DIN.
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    Self-certified copies of Annual Reports including Annual Financial Reports along with schedules, audited and complete Balance Sheet, as the case may be for 3 years. Most recent reports are to be provided.
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    Credit History: Certificate from Company Secretary / Board of Directors/ Managing Partner or Owner of the Proprietorship Firm. 1. Key Personnel Details: Contact details of three senior employees of applicant. Details would include Name, Designation, Address, phone, email. 1. Net Worth of the Applicant and/ or group companies as on the date of application: Certificate from Statutory Auditor or Independent Chartered Accountant, as the case may be. 1. Financial Details (self-certified) (last
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    Research and Development facility.
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    Project Details.
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    Domestic Value Addition.
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    Project Report for eligible product.
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    Application Fee Details.
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    Note: Detailed information regarding the documentation for the application process is available in the Guidelines ([Annexure 1](https://plibulkdrugs.ifciltd.com/docs/BD%20Guidelines.pdf)).

✦ Required ◦ Optional

How to Apply

OOnline
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 DrugsAccount Number : 3859475896Name of the Bank : Central Bank of IndiaIFSC Code : CBIN0281410Branch Code : 1410Branch Name : Nehru PlaceBank Address : Central Bank of India, 59, Shakuntala Building, Nehru Place, New Delhi - 110019

Quick Info

Level
Central Government
Launched
21 Jul 2026

Categories

Business & Entrepreneurship

Data Sources