DoP Implementing Operational Guidelines Under PLI Scheme

The Department of Pharmaceuticals (DoP) has made changes to the operational guidelines for the pharmaceutical production linked incentive (PLI) scheme, including elaborating the conditions for annual incentive allocations, clarifying the timeline for periodic claims, and procedures in the event of a change in the applicant group structure, among other things. According to the new modifications to the incentive calculation in the operational guidelines, the annual incentive allocation to each applicant shall be based on conditions such as the applicant company being required to avail incentive by achieving eligible sales in the fifth and sixth years under the scheme, as per Pharmabiz.

Maximum annual incentive ceiling of up to 20% of total incentive over scheme period for the first four years of scheme tenure , subject to aggregate maximum of 74% of total incentive over scheme period from fiscal years 2022-23 to fiscal years 2025-26. However, an applicant may be allocated up to 33% in any one year of the claim period, subject to a total cap of 74% between FY 2022-23 and FY 2025-26. The allocation in any one of the first four years may be forgone for an applicant based on request of applicant. The balance incentive allocation shall be made in the last two years of the scheme tenure, subject to minimum 10 per cent allocation in FY 2027-28, added the modified guideline.

Applicants must apply for additional incentives in the fifth and sixth years of their claim, namely FY 2026-27 and FY 2027-28. Additional incentive will be allocated on an applicant-by-applicant basis as the difference between the total incentive due to an applicant on account of eligible sales by the applicant between FY 2022-23 and FY 2025-26 and the total incentive availed of by the applicant, subject to a 74% ceiling for the period FY 2022-23 to 2025-26.