Pharma PLI Scheme: Industry worried about large capex & tough competition
The last date for application of pharma PLI scheme for APIs and bulk drugs is November 30. However, players in the pharma sector have said that there is only a lukewarm response to the government's production linked incentive scheme and some suggest more incentives and tweaks may be needed to ignite interest.
Pharmaceutical companies have been lukewarm to the government's production linked incentive scheme announced for the sector. This scheme was announced back in April and till now not a lot of them have applied for it.
Speaking in an interview to CNBC-TV18, Vijay Garg, Joint MD of IOL Chemicals & Pharmaceuticals said, “We will not be applying for the pharma PLI scheme.”
The last date for application of pharma Production Linked Incentive (PLI) scheme for active pharmaceutical ingredients (APIs) and bulk drugs is November 30. However, players in the pharma sector have said that there is only a lukewarm response to the government's production linked incentive scheme and some suggest more incentives and tweaks may be needed to ignite interest.
Garg said, “The major thrust under PLI is on fermentation based products, which isn’t IOL’s area of expertise.”
According to him, industry is worried about large capex and tough competition from China. “2-3 years is a short time to bring in robust technology to compete with Chinese products,” he said.
Meanwhile, Adhish Patil, CFO of Aarti Drugs said that the company will be applying for the pharma PLI scheme.
“However, the government will take 4 months to decide on who is eligible under PLI scheme,” he said.
According to Sujay Shetty, Partner & Pharma Head of PWC India, the capex required to set up capacities under PLI scheme is a concern.
Shetty also said, “Some API plants are subject to green clearance norms which could be a concern.”
For entire discussion, watch video
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