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Centre notifies incentive scheme to upscale API manufacturing

Thursday, 23 Jul 2020
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The Central government has notified Rs 6,940 crore production-linked incentive scheme to boost local bulk drug manufacturing and further reduce dependence on imports.

Around 53 active pharmaceutical ingredients (APIs) covering 41 product have been identified by the government, for which companies will be eligible for financial incentives, provided they set up indigenous greenfield manufacturing.

One will have to invest Rs 20 crore to set up a new facility which may be on the premises of an existing manufacturing plant and make the selected bulk drugs to avail of the scheme.

The government also notified a scheme to promote bulk drug parks. For selected parks, financial assistance to the tune of 70 percent of the project cost of common infrastructure facilities will be provided.

In the case of North-East states and hilly states - Himachal Pradesh, Uttarakhand, Union Territory of Jammu & Kashmir, and Union Territory of Ladakh, financial assistance will be 90 percent of the project cost. The maximum assistance under the scheme for one bulk drug park will be limited to Rs 1,000 crore. The total financial outlay of the scheme is Rs 3,000 crore.

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