PLI scheme for vax raw materials and 7 other sectors on the cards

The Union government may very soon announce incentives for at least eight more sectors, sources told CNBC-TV18 on Thursday, adding that the government is considering allocating at least Rs 30,000-40,000 crore worth of additional incentives.

One of the priority sectors is the pharmaceutical sector and sources say the government is working on a plan to reduce reliance on imported raw materials.

While a second Production Linked Incentive (PLI) scheme for the pharmaceutical sector is being consider, the government is also likely to bring a PLI scheme for vaccine raw materials, sources said. The new PLI shall focus on manufacturing key vaccine raw materials, active pharmaceutical ingredients (APIs), and key performance indicators (KPI) in India.

The development comes as the government is looking to reduce dependence on Chinese raw materials for manufacturing vaccines in India. Incentives to the tune of Rs 5,000-6000 crore could be allocated for PLI for vaccine raw materials, the sources said, adding that the PLI will be aimed at increasing investment in vaccine raw material manufacturing and import substitution. The scheme is likely to cover all vaccines manufactured in India, they added.

According to industry sources, at least 350 raw materials are used in manufacturing vaccines, and India imports 70 percent of its vaccine raw material requirement while US and China are major exporters of vaccine raw materials.

The government has asked all vaccine makers to provide the status of raw material manufacturing in India. All pharma companies have sent in their inputs to the government following which stakeholder consultations with the government shall take place soon.

Meanwhile, the govt already has a PLI scheme for pharma drugs and medical devices in place as part of which Rs 6,940 crore has been allocated for PLI for KPIs, DIs and APIs while Rs 3,420 crore for medical devices.
​
Among other sectors for which the government is considering bringing in PLI include toys, leather goods, apparel, shipping containers, coal gasification, specialty steel, and specialty chemicals. CNBCTV18