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Indian Govt Approves 51 Pharmaceutical Cos for PLI Scheme

Written by : Jayati Dubey

October 30, 2023

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Indian Government's PLI Scheme greenlights 51 pharma companies to reduce dependency on imported APIs, marking a pivotal stride toward self-sufficiency and strengthening the 'Make in India' vision.

The Indian government has approved 51 pharmaceutical companies to participate in the Production Linked Incentive (PLI) Scheme, a pivotal initiative aimed at bolstering the bulk drug manufacturing sector in the country.

This step underscores India's commitment to reducing its reliance on imported pharmaceutical ingredients and promoting self-sufficiency in drug production.

Uma Magesh, undersecretary to the Government of India in the Department of Pharmaceuticals, announced the government's dedication to boosting the Indian pharmaceutical industry.

For years, India has heavily depended on China for sourcing Active Pharmaceutical Ingredients (APIs) and Key Starting Materials (KSMs). To reduce this dependency and strengthen domestic manufacturing capabilities, India initiated policy changes in 2015.

Since then, the central government has introduced various measures, including establishing bulk drug clusters and implementing schemes to incentivise both new entrants and existing units to expand their manufacturing capacities.

The most recent and significant of these initiatives, the PLI scheme, was launched in 2020 with an initial annual budget of INR 6940 Cr. In a progressive move, the government has decided to extend financial incentives to eligible manufacturers for 41 identified products, encompassing 53 APIs, over a six-year period.

The Department of Pharmaceuticals has shared the list of 51 pharmaceutical companies approved under the PLI scheme to the Bulk Drugs Manufacturing Association of India (BDMA).

These companies are poised to produce a combined total of 92,130 Metric Tons (MT) of various active pharmaceutical ingredients and KSMs.

Notable among these companies are Aurobindo Pharma Limited, which is partnering with Lyfius Pharma to manufacture 15,000 MT of Penicillin G. Karnataka Antibiotics and Orchid Biopharma Limited have each been allocated a 1,000 MT capacity for C-ACA production.

Likewise, Kinvan Private Limited is permitted to produce 300 MT of Clavulanic Acid, while Hindus Labs, Emmennar Pharma, and Alkimia Pharma-Chem will collectively manufacture 6,000 MT of 1,1 Cyclohexane Diacetic Acid (CDA). Meghmani LLP and Sadhana Nitrochem will produce 13,500 MT and 36,000 MT of Para Amino Phenol, respectively.

Additionally, Granules India, RMC Performance Chemicals, and Alta Laboratories will contribute 8,000 MT, 1,500 MT, and 2,250 MT of Dicynadiamide (DCDA) to the initiative.

The BDMA has expressed its satisfaction with the approval of incentives under the PLI scheme for domestic bulk drug manufacturing companies. Eeshwar Reddy, the executive director of BDMA, sees this as a positive signal from the government to strengthen the domestic bulk drug industry.

With sustained support, India is poised to increase its manufacturing capacity and become a competitive force in producing affordable APIs for global markets, potentially reducing its reliance on imports. This move is not only a significant step toward self-sufficiency but also a boost to the "Make in India" campaign, aligning with the government's vision of transforming India into a global pharmaceutical manufacturing hub.


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