India likely to rejig pharma PLI, include new drugs intermediaries, APIs, KSMs to allocate unused ₹1,655 crore

In a continued push towards Atmanirbhar Bharat, the government is soon likely to rejig the pharma Production Linked Incentive (PLI) scheme for the unused funds, sources said. The PLI scheme was introduced in 2021 to ensure that India builds capacities to cater to the country and the world.

Sources said as per the rejig plan, "Government is likely to include new drug raw-materials to allocate the unused ₹1,655 crore." The new rejig plan is to include drug intermediaries, vitamins, anti-diabetic and anticoagulant drugs, sources added.

Another official in the know of the development confirmed and shared that "the proposal likely to be soon taken up by Cabinet and reallocation could be part of the interim budget."

The move comes on the back of the fact that as many as 8 Key Starting Materials (KSMs)/Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) could not find any takers under the existing scheme.

Sources claimed that the key starting materials/ Drug Intermediaries/ Active Pharmaceutical Ingredients, which could not find any takers are: "Erythromycin Thiocynate, Neomycin, Gentamycin, Clindamycin Base, Streptomycin, Tetracycline, Ciprofloxacin and 2-Methyl-5 Nitro-Imidazole (2-MNI)."

The government had earmarked ₹6,940 crore for Pharma PLI and till now the funds allocated are ₹5,285 crore. Similarly, for some Key starting materials/ Drug Intermediaries/ Active Pharmaceutical Ingredients, where funds have partially been used are: "Diclofenac Sodium, Dicyandiamide (DCDA) and 1.1 Cyclohexane Diacetic Acid (CDA)," sources added.

Once the capacities are built, in the next decade, India aims to become self-reliant and build a position of being a key exporter of these APIs, DIs, and KSMs.