Working to reduce import dependency through indigenous production: Mandaviya

He said the government is focussing on production of high-value pharmaceuticals and high-end medical devices.

"Manufacturing of components of high-end medical devices in the country will be another big step in moving towards Aatmanirbharta," Mandaviya said, while appreciating the efforts of the applicants selected under the scheme.

The Department of Pharmaceuticals released the first tranche of incentives under the Product Linked Incentive (PLI) scheme of pharmaceuticals amounting to Rs 166 crore to four selected applicants here on Tuesday.

The Department of Pharmaceuticals launched the PLI scheme for pharmaceuticals in 2021.

The financial outlay under this PLI scheme is Rs 15,000 crore over a period of six years. So far, 55 applicants have been selected under the scheme, including 20 Micro, Small & Medium Enterprises (MSMEs).

The financial year of 2022-2023 being the first year of production for the PLI Scheme, DoP has ear-marked Rs 690 crore as the budget outlay.

In a bid to enhance the manufacturing capabilities and contribute to product diversification towards high value goods in the pharmaceutical sector, three different categories of products are being supported under the scheme.

The first category includes Biopharmaceuticals; Complex generic drugs; Patented drugs or drugs nearing patent expiry; Cell-based or gene therapy drugs; Orphan drugs; Special empty capsules and Complex excipients.

The second category has the Bulk drugs except those 41 eligible products notified under PLI Scheme for Bulk drugs and the third category includes those drugs that are not covered under Category 1 and Category 2 such as Repurposed drugs; Auto immune drugs, anti-cancer drugs, anti-diabetic drugs, anti-infective drugs, cardiovascular drugs, psychotropic drugs and anti-retroviral drugs, including In vitro diagnostic devices.

Against the expected investment of Rs 17,425 crore in the pharmaceutical sector over the scheme period, the scheme has garnered an investment of Rs 16,199 crore by these 55 applicants in the first year of implementation itself.

Against the expected employment of 1 lakh over the six-year scheme period, 23,000 persons have been given employment, so far.

Based on the information submitted by the applicants, about Rs 2,200 crore incentives (out of a total outlay of Rs 15,000 crore under the scheme) will be claimed based on the expected sales in FY 2022-23. Out of this, applicants are expected to file an incentive claim of about Rs 850 crore of incentive claims before the end of March 2023.

The Department has received an incentive claim of about Rs 544 crore from 15 applicants. Based on the evaluation, Rs 221 crore of claims of incentives from four applicants viz., Dr. Reddy's Laboratories Limited, Biocon Limited, Strides Pharma Science Limited, Premier Medical Corporation Private Limited, were found to be eligible and 75 per cent of this amount, i.e., Rs 165.74 crore have been released.

Remaining incentives are under examination. As of January 31 2023, sales of about Rs 36,000 crore have been reported by the select 55 applicants.

The Department of Pharmaceuticals also implements two other PLI schemes, namely PLI for Bulk Drugs and PLI for Medical Devices.

Under the PLI scheme for Bulk Drugs with a financial outlay of Rs 6,940 crore, the objective is to boost domestic production of 41 select critical bulk drugs in the country.

So far, 51 projects have been selected for the 34 notified bulk drugs. Out of this, 22 projects have been commissioned till date.

Under the PLI scheme for Medical Devices with a financial outlay of Rs 3,420 crore, a total of 21 applicants have been selected.

The scheme aims to establish domestic manufacturing capability of high-end medical devices under four target segments: Cancer care, Radiology & Imaging medical devices, Anaesthetics & Cardio-Respiratory medical devices and all implants, including implantable electronic devices.

--IANS avr/pgh

( 646 Words)

2023-02-21-21:16:02 (IANS)