The government has invited new applications under the performance-linked incentive (PLI) scheme for the production of bulk drugs in two product categories, including broad-spectrum antibiotic meropenem and antiretroviral medicine ritonavir.
The department of pharmaceutical (DoP) notification said that eight firms – four in each category – would be selected under the scheme in order to boost the domestic production of these two drugs.
The DoP said that it had earlier invited applications for these specific products under PLI scheme in November 2025 and December 2025 but due to the industry demand, it has decided to re-open the application.
“Subsequent to the representations received from industry stakeholders expressing intent to participate under the scheme, and with the approval of the competent authority, it has been decided to re-open the application window for the aforesaid eligible products,” the notification said.
What does the proposal submit?
Under the proposal, the DoP will provide support to four firms with a minimum annual production capacity of 4 metric tonnes (MT) for meropenem, with a total production capacity of 16 MT. In case of ritonavir, a maximum of four firms will be selected with a minimum annual production capacity of 5 MT, for a total production capacity of 20 MT.
“Various conditions of the scheme shall remain unchanged such as allocation shall continue to be subject to available capacities, applicable annual incentive ceilings in respect of the products, and the limit of incentive up to the production tenure – up to FY28 for chemical synthesis products,” it said.
Further, the government said that the applicants – including their group companies or subsidiaries – who had previously applied under the scheme for the same unsubscribed products and were granted approval, but subsequently withdrew or whose approval was cancelled in accordance owing to non-performance or other reasons, are not be eligible to apply.
A brief history of the PLI scheme for bulk drugs
The PLI scheme for bulk drugs, which was introduced in FY20 with an outlay of Rs 6,940 crore, aims to avoid disruption in supply of critical APIs used to make critical drugs, reduce dependence on imports, generate employment and save foreign exchange reserves.
As of September 2025, manufacturing capacity has been created for 26 key starting materials (KSMs) and active pharmaceutical ingredients (APIs) resulting in cumulative sales of Rs 2,315 crore from the start of the scheme, including exports of Rs 508 crore.
As per government data, the scheme has led to avoidance of imports worth Rs 3,591 crore of APIs, KSMs and drug intermediates (DIs).