The Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials, Drug Intermediates and Active Pharmaceutical Ingredients offers financial support to manufacturers setting up greenfield projects in India. As of August 2026, the scheme has attracted ₹4,814 crore in investments and generated cumulative sales of ₹2,720 crore, including exports worth ₹527.96 crore.
The Department of Pharmaceuticals continues to accept applications for new products under Round VI of the scheme. Notifications for Meropenem and Ritonavir were released in November 2025, December 2025, and February 2026, with the application window open from 20 February 2026 to 12 March 2026. A corrigendum dated 4 May 2026 introduced amendments to the incentive disbursement mechanism and extended timelines for sales reconciliation compliance.
Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials, Drug Intermediates and Active Pharmaceutical Ingredients
The PLI Scheme for Bulk Drugs is run by the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers. The scheme targets 41 identified products across fermentation-based and chemical synthesis-based categories. It provides incentives based on net incremental sales over a period of 6 years to help Indian manufacturers compete with imports.
As per the latest data shared in Parliament in March 2026, manufacturing capacity of 56,800 metric tonnes per annum has been created for 28 critical KSMs, DIs, and APIs. Total committed capacity stands at 91,077 metric tonnes per annum for 33 subscribed products, exceeding the originally planned capacity of 82,270 metric tonnes for all 41 products.
The scheme remains open only for greenfield projects. Companies must meet specific threshold investment criteria depending on their product category. The Industrial Finance Corporation of India (IFCI) manages the scheme as the Project Management Agency.
| Scheme Name | PLI Scheme for Bulk Drugs |
|---|---|
| Ministry | Ministry of Chemicals and Fertilizers |
| Department | Department of Pharmaceuticals |
| Project Type | Greenfield Projects Only |
| Total Outlay | ₹6,940 crore |
| Scheme Tenure | FY 2020-21 to FY 2029-30 |
| Base Year | FY 2019-20 |
| Products Covered | 41 identified KSMs, DIs, and APIs |
| Incentive Period | 6 years |
| Application Portal | https://plibulkdrugs.ifciltd.com/login |
Latest Updates 2026
The Department of Pharmaceuticals issued a corrigendum on 4 May 2026 making key changes to the scheme guidelines. The amendment allows partial incentive disbursement based on unaudited financial statements, with applicants receiving 80% of the incentive initially and the remaining 20% after final audit. The deadline for sales reconciliation compliance has also been extended.
Round VI applications for Meropenem and Ritonavir were opened through notices dated 26 November 2025, 26 December 2025, and 19 February 2026. Eligible applicants could submit proposals online through the IFCI portal between 20 February 2026 and 12 March 2026.
Investment and Employment Details
The scheme has shown steady growth since its launch. By December 2025, total investment reached ₹4,814 crore against a commitment of ₹4,329.95 crore. The project has generated 4,896 employment opportunities directly. Three Bulk Drug Parks have been approved in Andhra Pradesh, Gujarat, and Himachal Pradesh with a total project cost exceeding ₹6,306 crore.
Benefits
Manufacturers receive cash incentives calculated on net incremental sales of the 41 identified products. The incentive structure varies by production method and product category.
- Fermentation-Based Products: 20% incentive from FY 2023-24 to FY 2026-27, reduced to 15% in FY 2027-28, and further reduced to 5% in FY 2028-29.
- Chemical Synthesis-Based Products: 10% incentive applicable from FY 2022-23 to FY 2027-28.
The complete list of 41 covered products includes Penicillin G, 7-ACA, Clavulanic Acid, Erythromycin Thiocyanate, Betamethasone, Dexamethasone, Prednisolone, Rifampicin, Clindamycin Base, Streptomycin, Tetracycline, Neomycin, Gentamycin, Para Amino Phenol, CDA, DCDA, 2-MNI, Meropenem, Atorvastatin, Olmesartan, Valsartan, Losartan, Levofloxacin, Sulfadiazine, Ofloxacin, Norfloxacin, Artesunate, Telmisartan, Aspirin, Levetiracetam, Carbidopa, Ritonavir, Lopinavir, Acyclovir, Carbamazepine, Oxcarbazepine, Vitamin B6, Levodopa, Vitamin B1, Diclofenac Sodium, and Ciprofloxacin.
Eligibility
Only companies establishing new greenfield projects in India can apply. The applicant must be registered in India and meet the minimum threshold investment required for their product segment.
| Segment | Threshold Investment |
|---|---|
| Fermentation based (4 KSMs/DIs) | ₹400 crore |
| Fermentation based (10 niche products) | ₹50 crore |
| Key Chemical Synthesis (4 KSMs/DIs) | ₹50 crore |
| Other Chemical Synthesis (23 products) | ₹20 crore |
Application Process
STEP 1 - Visit the official application portal at plibulkdrugs.ifciltd.com and create an account using valid credentials.
STEP 2 - Fill out the online application form with details of the proposed greenfield project, product category, investment plan, and production capacity.
STEP 3 - Pay the application fee of ₹1,00,000 for Penicillin G, 7-ACA, Erythromycin Thiocyanate, or Clavulanic Acid. For all other eligible products, the fee is ₹50,000.
STEP 4 - Make the payment electronically via NEFT or RTGS to the IFCI bank account at Central Bank of India, Account Number: 3859475896, IFSC: CBIN0281410.
STEP 5 - Upload all required documents including company registration papers, PAN and GST certificates, profiles of key personnel, audited financial reports for the last 3 years, net worth certification, project report, R&D facility details, and proof of application fee payment.
References
- Gazette Notification
- Scheme Guidelines
- Corrigendum dated 4.5.2026
- Notice dated 19.2.2026 (Round VI)
- Official PLI Bulk Drugs Website
- Department of Pharmaceuticals - PLI Scheme Page
FAQ's
What is the current status of the PLI Bulk Drugs scheme in 2026?
The scheme is active and accepting applications for new products under Round VI. As of March 2026, investments of ₹4,814 crore have been made and cumulative sales of ₹2,720 crore have been recorded.
What changes were introduced in the May 2026 corrigendum?
The corrigendum dated 4 May 2026 allows 80% incentive disbursement based on unaudited statements with the remaining 20% paid after audit. Sales reconciliation deadlines have also been extended.
Which products are covered under Round VI applications?
Round VI specifically invites applications for Meropenem and Ritonavir. The application window for these products was open from 20 February 2026 to 12 March 2026.
Who manages the scheme implementation?
The Industrial Finance Corporation of India (IFCI) serves as the Project Management Agency responsible for handling applications and coordinating with the Department of Pharmaceuticals.
How is the incentive calculated?
Incentives are based on net incremental sales of the 41 identified products over a 6-year period. Fermentation-based products receive 20% incentive initially, while chemical synthesis-based products receive 10%.