India Pharma Outlook Team | Friday, 16 May 2025
The Department of Pharmaceuticals (DoP) has sought new applications under the Production Linked Incentive (PLI) scheme for bulk drugs, for products that have not been applied for or are partially produced under the scheme. The latest round will identify a maximum of 25 manufacturers; spanning six fermentation-based and five chemical synthesis-based key starting materials (KSMs), drug intermediates (DIs), or active pharmaceutical ingredients (APIs).
Some of the well-known products based on fermentation are erythromycin thiocyanate, neomycin, gentamicin, clindamycin, streptomycin, and tetracycline. Products based on chemical synthesis are 2-methyl-5-nitro imidazole, dicyandiamide, cyclohexane diacetic acid, ciprofloxacin, and diclofenac sodium.
Applications open from May 15, 2025, to June 14, 2025. Fresh applications only—candidates who withdrew or got disqualified in previous rounds cannot apply again for the same product.
The initiative, initiated in March 2020 with an outlay of Rs. 6,940 crore, aims to cut import reliance on 41 bulk drugs. Investment worth Rs. 4,253.92 crore had been realized as of December 2024, higher than initial commitments. However many projects have been cleared so far, 34 have been commissioned.
Some notable projects are Penicillin G in Andhra Pradesh (Rs. 1,910 crore) and Clavulanic Acid in Himachal Pradesh (Rs. 450 crore). By December 2024, sales under the scheme were Rs. 1,556.04 crore, of which Rs. 412.42 crore have been exported. Incentives of Rs. 20.32 crore have been released, and 4,473 jobs so far have been created with an estimated 9,600 jobs by the scheme's end.
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