Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices gives a 5% cash incentive on incremental sales to companies that set up new greenfield medical device plants in India. Government of India launched this scheme in 2020 with a total outlay of rupees 3,420 crore, and it is still open for the production tenure running from financial year 2022-23 to 2026-27.
Department of Pharmaceuticals, under Ministry of Chemicals and Fertilizers, runs this scheme to cut import dependence and build a strong local medical technology ecosystem. As per the latest official update, 19 greenfield projects have been commissioned and production of 44 products, including high end devices like MRI machines, CT scans and linear accelerators, has started under the scheme.
Production Linked Incentive Scheme for Medical Devices - Overview
The scheme gives a financial incentive to boost domestic manufacturing and attract large investments in the medical device sector. Selected companies get the incentive at the rate of 5% on incremental sales of medical devices manufactured in India, calculated over the base year of financial year 2019-20, for a period of five years.
Eligible target segments under the scheme include:
- Cancer care and radiotherapy medical devices.
- Radiology, imaging and nuclear imaging devices.
- Anaesthetics and cardio-respiratory medical devices, including oxygen concentrators and renal care devices.
- All medical implants, including electronic implantable devices.
Industrial Finance Corporation of India (IFCI) works as the designated Project Management Agency for running and checking the scheme. Cumulative sales made by approved applicants up to September 2024 stood at rupees 8,039.63 crore, which includes exports worth rupees 3,844.01 crore.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices |
| Level | Central |
| Ministry | Ministry of Chemicals And Fertilizers |
| Department | Department of Pharmaceuticals |
| Beneficiary States | All |
| Benefit Type | Financial Incentive (Cash) |
| Incentive Rate | 5% on incremental sales |
| Total Outlay | Rupees 3,420 crore |
| Production Tenure | FY 2022-23 to FY 2026-27 |
| Launch Date | 21 July 2020 |
Benefits
Eligible manufacturers get a 5% financial incentive based on the incremental sales of their manufactured goods, calculated over the base year of financial year 2019-20. The incentive is paid for five years, which helps new plants recover their setup costs and stay competitive against imported products.
Eligibility
General Eligibility Criteria
- The applicant must be a company or a Limited Liability Partnership (LLP) registered in India.
- The business must be engaged in manufacturing medical devices within the defined target segments.
- The project must be a new greenfield facility, as the scheme supports only fresh projects.
- The applicant must meet the required total investment and incremental sales limits.
Investment and Sales Limits
To qualify, applicants must reach a minimum total investment of rupees 180 crore over 3 years. The minimum incremental sales of manufactured goods are set at rupees 120 crore in year 1, rupees 240 crore in year 2, rupees 360 crore in year 3, rupees 460 crore in year 4 and rupees 560 crore in year 5.
Application Process
Interested applicants must submit their proposals online through the official portal at plimedicaldevices.ifciltd.com. The evaluation process follows these steps:
STEP 1 - Go to the official portal at PLI Medical Devices official website and register the company details along with the proposed greenfield project information.
STEP 2 - Fill in the application form with the target segment, product details and the proposed investment and sales figures, and attach all required documents.
STEP 3 - Submit the complete application within the designated application window, which is normally 120 days from the date the window opens.
STEP 4 - Applications are appraised by the Project Management Agency and then reviewed by the Empowered Committee, which grants approval for eligible applications.
STEP 5 - Approved manufacturers submit incentive claims based on audited performance data, and the incentive is paid after successful checking of these claims.
Documents
Applicants need to provide the following documentation while applying:
- Certificate of Incorporation.
- Detailed project report for the greenfield facility.
- Proof of investment.
- Incremental sales data certified by a statutory auditor.
- Auditor certificates and annual financial statements.
- Any additional supporting documents asked by the department.
References
Official scheme page, guidelines and notifications - Department of Pharmaceuticals
Official Scheme Guidelines and Amendments
FAQ's
What is the primary goal of this scheme?
The scheme aims to improve domestic production capacity and attract large industrial investment into the Indian medical devices sector, so that fewer devices need to be imported.
Are existing manufacturing units eligible?
No, the scheme is specifically made to support new, greenfield projects only.
How is the incentive calculated?
The incentive is calculated at a rate of 5% on the incremental sales of manufactured goods compared to the base year of 2019-20, for a period of five years.
What is the minimum investment required?
A minimum of rupees 180 crore in total investment is required over a 3-year period.
Who manages the application process?
Industrial Finance Corporation of India (IFCI) acts as the Project Management Agency responsible for overseeing applications and verifying claims.
Does this scheme include oxygen concentrators?
Yes, oxygen concentrators are included under Target Segment 3, which covers anaesthetics and cardio-respiratory medical devices.