Exclusive webinar organised by Gubba in collaboration with Darda associates on ‘ Production linked incentive scheme’

June 23, 2021 Gubba Pharma In E News

PLI for API/KSM/DI [PLI 1.0] was launched last year in March 2020 for the incentive outlay of INR 6,940 crores for which 47 approvals have been granted till April 2021 and for certain specified products, the scheme has been reopened for application till 28 July 2021.
To continue further for promoting pharmaceuticals industry, Department of Pharmaceuticals (DoP) notified the PLI Scheme for Pharmaceuticals [PLI 2.0] with expanded scope and deep pocket vide Gazette Notification No.31026/60/2020-Policy-DoP dated 3 March 2021. The approved outlay of the scheme is INR 15000 crore which envisages to create global champions out of India who have the potential to grow in size and scale using cutting edge technology and thereby penetrate the global value chains. The scheme is open from 2 June 2021 to 31 July 2021.
Based on a series of consultations with the pharma industry and stakeholders in the government, the operational guidelines for the scheme have been issued vide File No. 31026/60/2020-Policy dated 1 June 2021. The eligible applicants can apply on SIDBI (Project Management Agency – PMA) portal i.e., https://pli-pharma.udyamimitra.in/.
Darda Advisors in collaboration with Gubba Cold Storage organised the webinar on the same on 14 June 2021 which can be accessed on Gubba Cold Storage’s YouTube Link.
The applications are invited in three groups based on the Global Manufacturing Revenue (GMR) of FY 2019-20 of the applicants. A special carve out for MSMEs has been kept under the scheme. The applicants will be required to achieve minimum cumulative investment per year over a period of 5 years as prescribed under the scheme and prescribed threshold sales YoY to avail the incentive.
The investment could be under new plant and machinery, equipment and associated utilities, research and development, transfer of technology, product registration and expenditure incurred on building where plant and machinery are installed. No second hand/ used/ refurbished plant, machinery, equipment, utilities or research and development equipment shall be considered as eligible investment for the purpose of this Scheme. Investment made on or after 1 April 2020 will be considered as eligible investment under the scheme. The key conditions for each group are mentioned below:

The eligible products have been categorized into three categories. The products covered under the scheme are formulations, biopharmaceuticals, active pharmaceutical ingredients, key starting material, drug intermediates, in-vitro diagnostic medical devices, etc. The category-1 and category-2 products attract 10% incentive and category-3 products attract 5% incentive on the incremental sales. Incremental sales of a product mean sales of that product in a year over and above the sales of that product in FY 2019-2020.

Based on clearly laid out selection criteria given in the guidelines and mentioned below, a maximum of 55 applicants will be selected under the scheme.

Following is the event flow for obtaining approval and disbursement under PLI 2.0.

An applicant, through a single application, can apply for more than one product and the products applied by an applicant can be in any of the three categories. Thereafter, the selected manufacturers will be able to receive production linked incentives based on incremental sales of pharmaceutical products for a period of 6 years.
Being the scheme is limited in terms of number of application, time line and eligibility conditions, its utmost important to have adequate assistance and support to deliberate and accordingly prepare the application and apply to obtain the approval.
About the Speaker:
Vineet has over 16 years of consulting experience in leadership role in Indirect tax including GST (around 13 years in Big 4) and working with leading players in diverse industry sectors including pharma. He has conducted sessions on various indirect tax topics (including GST) at Client’s place, Business Parks, and other forums (ASCI, FTAPCCI, JICA, KOTRA, EPC, ICAI, ICFAI, JITO, RGA and others).
You can reach out on 91-99529 26239 or email vineetdarda@dardaadvisors.com.
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