PLI Scheme: 11 Drugmakers to produce bulk drugs under this scheme

The Ministry of Chemicals and Fertilisers has given the go-ahead to 11 pharmaceutical companies in order to produce 9 KSMs (Key Starting Materials, drug intermediates and APIs (Active Pharmaceutical Ingredients) under a scheme named Production Linked Incentive. 

The ministry has instructed that the approval would be sought for the PLI scheme-qualified companies for the final Segment-IV category items within the 28’th of February.

Following are the list of eligible firms, together with products they are going to manufacture:

• Natural Biogenex Pvt. Ltd. (Betamethasone, Dexamethasone, Prednisolone).
• SymbiotecPharmalab Pvt. Ltd. (Prednisolone).
• Macleods Pharmaceutical Ltd. (Rifampicin).
• Optimus Drugs Pvt. Ltd. (Vitamin B1, Streptomycin).
• Sudarshan Pharma Industries Ltd. (Vitamin B1).
• Saraca Laboratories Ltd. (1,1 Cyclohexane Diacetic Acid).
• Emmennar Pharma Pvt. Ltd. (1,1 Cyclohexane Diacetic Acid).
• Hindys Lab Pvt. Ltd. (1,1 Cyclohexane Diacetic Acid).
• Aarti Speciality Chemicals Ltd. (2-Methyl-5NitroImidazole )
• Meghmani LLP (Para amino phenol).
• Sadhana Nitro Chem Ltd. (Para amino phenol).

The approval of Sadhana Nitro Chem Limited is deemed conditional and is linked to the court verdict outcome. 

On behalf of a statement given by the ministry, “In order to set up these necessary plants, a committed investment amount of Rs 862.01 crore will be needed. This will also necessitate 1,763 people to be employed. 

Words have been given by the ministry that the government had approved a total 19 applications with Rs 4623.01 crores as the committed investment amount. 

1’st April 2023 onwards is when commercial production is expected to commence and the disbursal of PLI by the government over the 6-years period would be up to Rs 4,870 crore.

“Setting of these necessary plants will help build the nation absolutely self-reliant to a healthy extent in respect to the bulk drugs,” ministry added. 

Under the PLI scheme the government wants to encourage domestic production in order to set up greenfield plants. These existing target segments are specifically distributed with 70% in 2 chemical-synthesis-based segments and at least 90% in 2 fermentation-based segments, with a total outlay amount of Rs 6,940 crore for the time period of 2020-21 to 2029-30 under the PLI Scheme. 

November 30’th 2020 was the deadline in order to submit applications for companies coming to the 4 different Target Segments. 

The ministry got a total 215 applications for the 36 products spread across the 4 different Target Segments. 

Under Target Segment I, five applications have already been approved Rs. 3,761 crores as the committed investment.

Reference:

https://www.pib.gov.in/PressReleasePage.aspx?PRID=1677366

https://m.businesstoday.in/story/pli-for-pharmaceuticals-11-drug-makers-to-produce-bulk-drugs-under-scheme/1/432415.html

https://m.economictimes.com/industry/healthcare/biotech/pharmaceuticals/pli-scheme-government-approves-19-applications-for-domestic-manufacturing-of-apis-key-drug-intermediates/articleshow/81232891.cms