Sun Pharma And Dr. Reddy's To Wockhardt: 55 Pharma Firms Selected Under PLI Scheme

India has selected 55 pharmaceutical companies, including Sun Pharmaceutical Industries Ltd., Dr. Reddy’s Laboratories Ltd. and Lupin Ltd., for production-linked incentives worth Rs 15,000 crore as part of the government’s effort to boost local manufacturing.

• The scheme will provide financial incentives on the incremental sales (over the FY20 base year) of pharmaceutical goods and in-vitro diagnostic medical devices to selected applicants based on pre-defined selection criteria.

• The incentives will be paid for a maximum period of six years for each participant depending upon the threshold investments and sales criteria to be achieved by the applicant.

• The companies are allowed to change the product mix up to five times during the duration of the scheme.

• The total quantum of the incentive for the scheme is Rs 15,000 crore.

• The Small Industries Development Bank of India is the Project Management Agency for the scheme.

While the details of the selected products and year-wise incentives for companies are not known yet, Nomura, in its report, said, “Most of the companies we have interacted with suggest that they expect to utilise the entire available incentive.”