Schemes for promoting domestic manufacturing of APIs

New Delhi : The quantity of API manufactured domestically is not readily available. However, the size of API and Intermediates market in India is estimated to be Rs. 96,000 crore in FY 2019-20. Further, as per data maintained by Directorate General of Commercial Intelligence and Statistics (DGCIS), the quantity and value of API imported and exported in FY 2020-21 is given below:

The Department of Pharmaceuticals is implementing the following three (03) schemes for promoting domestic manufacturing of APIs to ensure their sustainable domestic supply and make India AtmaNirbhar (self-reliant):

1. Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) In India: The scheme provides for financial incentives to manufacturers selected under the scheme for manufacturing of 41 Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs). The incentives will be provided on incremental sales to selected participants for a period of 6 years. The total financial outlay of the scheme is Rs. 6,940 crore and the tenure of the scheme is from FY 2020-2021 to 2029-30.

1. Scheme for Promotion of Bulk Drug Parks: The scheme provides for grant-in-aid to three (03) Bulk Drug Parks for creation of Common Infrastructure Facilities (CIF) with a maximum limit of Rs.1000 crore per park or 70% of the project cost of CIF, whichever is less. In case of North Eastern States and Hilly States (Himachal Pradesh, Uttarakhand, Union Territory of Jammu & Kashmir and Union Territory of Ladakh) financial assistance would be 90% of the project cost. The total financial outlay of the Scheme is Rs. 3000 crore and the tenure of the Scheme is from FY 2020-21 to 2024-25.

1. Production Linked Incentive Scheme for Pharmaceuticals: The scheme provides for financial incentives to manufacturers selected under the scheme for manufacturing of Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) amongst other categories of formulations. The incentives will be provided on incremental sales to selected participants for a period of 6 years. The total financial outlay of the scheme is Rs. 15,000 crore and the tenure of the scheme is from FY 2020-2021 to 2028-29.

This information was given by the Minister of Health & Family Welfare and Chemicals & Fertilizers, Mansukh Mandaviya in a written reply in Lok Sabha today.