The Department of Pharmaceuticals (DoP) has invited fresh applications under the performance-linked incentive (PLI) scheme for bulk drugs with an aim to boost the domestic production of broad-spectrum antibiotic meropenem and antiretroviral medication ritonavir.
In a notice, DoP said that it’s seeking applications from eight firms – four for each category – under the PLI Scheme for promotion of domestic manufacturing of critical key starting materials (KSMs), drug intermediates (DIs) and active pharmaceutical ingredients (APIs) in the country.
For ritonavir, the government will select four applicants with a minimum production capacity of 5 metric tonnes per annum (MTPA), with a total capacity of 20 MTPA. Similarly, selection of four firms will be done for meropenem with each having a minimum capacity of 4 MTPA.
What did DoP say?
“Various conditions under the scheme, such as allocation according to available capacities, incentive ceiling in respect of products and limit of incentive up to the production tenure – up to FY28 for chemical synthesis products, would have to be complied with,” said the DoP notice.
The department has also clarified that applicants, including their group companies or subsidiaries, who had previously applied under the scheme for the same unsubscribed products and were granted approval, but who subsequently withdrew from the scheme or whose approval was cancelled owing to non-performance or other reasons, are not eligible to apply this time.
In May this year, the DoP had invited applications from the industry on 11 product categories under the fifth round of the scheme.
India historically reliant on on China for bulk drugs
India has a heavy reliance on China for bulk drugs with over 70% of the country’s demand is being met by Chinese imports. To reduce the supply chain risks and give a level-playing field to the domestic API manufacturers, the government introduced PLI scheme in FY20 with a total financial outlay of Rs 6,940 crore. As on August 2025, 32 pharma entities have been selected for greenfield production through 48 projects involving 33 APIs/DIs/KSMs.
Additionally, cumulative sales of Rs 1,962 crore have been reported over the period from FY23 onwards, including exports of Rs 479 crore, thereby avoiding imports worth Rs 1,483 crore, as per the government data.
