The Central Government has launched the detailed guidelines for production linked incentive PLI (scheme) and bulk drug parks scheme. The guidelines for the PLI scheme have evoked a mixed reaction from industry stakeholders.
Industry observers pointed out that the evaluation selection criteria of the PLI scheme along with a compulsion of minimum Rs 20 crore investment looks more favourable to big pharma companies and its benefits will remain unchanged for the MSME sector.
According to a senior officer from the DoP, the PLI scheme is not targeted only towards MSMEs. However, he pointed out the benefits for MSMEs and said, “We need size and scale to be competitive viz a viz competing countries. MSMEs will be benefitted immensely from the bulk drug parks scheme. The common facilities at reasonable user charges, land lease rate, electricity, and water will be provided at very competitive rates. All kinds of incentives from state governments, like plug-in facilities, single window system will be really helpful for MSMEs.”
Sudarshan Jain, Secretary-General, Indian Pharmaceutical Alliance (IPA) said, “We welcome the government announced detailed guidelines of PLI scheme, although we are studying the scheme criteria, we look forward as it is a promising Scheme. It will help to create self-reliance in the API in over a period of time. At the same time, it will take care of healthcare security of India.”
BR Sikri, Chairman, FOPE, and Vice President, BDMA stated, “A very balanced and transparent guidelines have been issued by the Government of India. It is well known that bulk drugs/APIs are the basics for the growth of the pharma industry. The government has kept in mind the future growth of the pharma sector while announcing the guidelines. The government intends to ensure that there is an uninterrupted supply of quality drugs and their focus is on research also. Atma Nirbharta, the PM’s dream is going to be successful by the introduction of such scheme and incentives.”
The criteria of evaluation for selection of states for bulk drug park shows the commitment of the Government of India. There cannot be any favouritism by the Government to any specific state because the factors kept in mind are very transparent. Each and every point with regards to all parameters such as utility charges, total land availability, uninterrupted availability of water and power, location of the park, connectivity of the park and other incentives including ease of doing business etc. are evidence of the Government of India’s intention. I hope entrepreneurs will come forward soon with their product range to apply for the Central Government’s announced schemes. And state governments will also come forward with their incentive schemes. There is going to be open competition among investors as well as among state governments.”
Mahesh Doshi, President, IDMA, opined, “Overall, it is a good and ambitious plan, which aims to reduce our dependency on import of APIs. Although, it is mainly for the greenfield projects the government has also given consideration to brownfield projects which have the capacity to build new block/units with fresh investments. They will also be eligible to avail the scheme benefits. However, we are studying the detailed guidelines in detail.
Yogin Mazumdar, Chairman of Bulk Drug Committee, IDMA, articulated, “It is a good initiative of the Government. But the guidelines of the PLI scheme are a bit complicated for MSMEs to easily understand. Unfortunately, it is being restricted to only ‘greenfield’ units. Hence the actual benefit will take more than one year, the time needed to set up fresh facilities, new or even in existing plants. The free capacities of nearly 30 per cent with many existing units will not be utilised under the scheme. Hope the government is separately looking a scheme for utilising the spare capacities available with the ‘brownfield’ units, which would give immediate results towards reducing our dependence over the Chinese.
Further, I have personal experience of the Chinese suddenly reducing export prices if they find capacity being created in India. Now that there is a stipulation for a minimum investment to take benefit under ...
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