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Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India 2026

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Quick answer

The Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs), Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India provides financial incentives on incremental sales to manufacturers of 41 identified products. It is open to Indian manufacturers undertaking greenfield projects meeting threshold investment criteria, with incentives ranging from 5% to 20% based on product type and year. Applications are submitted online via the IFCI PLI Bulk Drugs portal with required documents and an application fee.

At a glance

Ministry / departmentMinistry Of Chemicals And Fertilizers
LevelCentral Government
Application modeOnline

Benefits

  • Financial incentive is provided on sales of 41 identified products for 6 years.
  • The scheme covers four target segments listing 41 products as detailed in Annexure B.
  • For fermentation‑based products: 20% incentive from FY 2023-24 to FY 2026-27, 15% incentive in FY 2027-28, and 5% incentive in FY 2028-29.
  • For chemical synthesis‑based products: 10% incentive from FY 2022-23 to FY 2027-28.
  • Incentives are applicable for 41 products covering 53 critical APIs.

Who can apply (eligibility)

  • The scheme is applicable only for greenfield projects.
  • Support under the scheme shall be provided only to manufacturers of critical KSMs/DIs and APIs registered in India.
  • Eligibility shall be subject to threshold investment in green field projects as given in the below‑table.
  • Eligibility under the scheme shall not affect eligibility under any other scheme and vice‑versa.
  • Fermentation based 04 KSMs / Drug Intermediates: threshold investment ₹400,00,00,000/-
  • Fermentation based 10 niche KSMs / Drug Intermediates / APIs: threshold investment ₹50,00,00,000/-
  • Key Chemical Synthesis based 04 KSMs / Drug Intermediates: threshold investment ₹50,00,00,000/-
  • Other 23 Chemical Synthesis based KSMs / Drug Intermediates / APIs: threshold investment ₹20,00,00,000/-

Documents required

  • Constitution of Business: copy of memorandum and articles of association or equivalent registration document, Partnership Deed and any equivalent document; shareholding pattern, share of partners.
  • Business Details: self‑certified copies of PAN, GST Certificate for applicant.
  • Business Details: self‑certified copies of brief profile of Chairman, CEO, CXOs, Promoter and Key Managerial Persons along with their PAN/DIN.
  • Business Details: self‑certified copies of Annual Reports including Annual Financial Reports along with schedules, audited and complete Balance Sheet for 3 years; most recent reports to be provided.
  • Credit History: certificate from Company Secretary / Board of Directors/ Managing Partner or Owner of the Proprietorship Firm.
  • Key Personnel Details: contact details of three senior employees of applicant (name, designation, address, phone, email).
  • Net Worth of the Applicant and/or group companies as on the date of application: certificate from Statutory Auditor or Independent Chartered Accountant.
  • Financial Details (self‑certified) for the last 3 years.
  • Research and Development facility.
  • Project Details.
  • Domestic Value Addition.
  • Project Report for eligible product.
  • Application Fee Details.

How to apply

  1. 1Visit the official portal https://plibulkdrugs.ifciltd.com/login.
  2. 2Register or log in using your credentials.
  3. 3Fill the online application form with all required details.
  4. 4Upload the required documents as per the checklist.
  5. 5Pay the application fee electronically via NEFT/RTGS to the designated bank account: Account Name – IFCI – PLI – Bulk Drugs, Account Number – 3859475896, IFSC – CBIN0281410, Bank – Central Bank of India, Branch – Nehru Place, New Delhi – 110019.
  6. 6Submit the application and note the application reference number for tracking.
  7. 7Await evaluation by the Project Management Agency (IFCI); the Empowered Committee will approve eligible applications and disburse incentives.

Frequently asked questions

Who is eligible to apply under the scheme?+

Any manufacturer registered in India engaged in manufacturing eligible KSMs, Drug Intermediates, or APIs can apply, provided the project is a greenfield project meeting the threshold investment criteria.

What is the incentive rate for fermentation‑based products?+

20% incentive from FY 2023-24 to FY 2026-27, 15% in FY 2027-28, and 5% in FY 2028-29.

What is the incentive rate for chemical synthesis‑based products?+

10% incentive from FY 2022-23 to FY 2027-28.

What is the application fee under the scheme?+

₹1,00,000/- for Penicillin G, 7‑ACA, Erythromycin Thiocynate (TIOC), Clavulanic Acid; ₹50,000/- for all other eligible products.

How is the application fee paid?+

The application fee is paid electronically through NEFT or RTGS to the bank account of IFCI – PLI – Bulk Drugs (Account No. 3859475896, IFSC CBIN0281410, Central Bank of India, Nehru Place).

What is the duration of the scheme?+

The scheme operates from FY 2020-21 to FY 2029-30.

Who implements the scheme?+

The scheme is implemented through the Industrial Finance Corporation of India (IFCI), which acts as the Project Management Agency (PMA).

What is the objective of the scheme?+

The scheme aims to promote domestic manufacturing of critical Key Starting Materials (KSMs), Drug Intermediates, and Active Pharmaceutical Ingredients (APIs) to reduce import dependence.

Is the scheme applicable to brownfield projects?+

Not specified; the data states the scheme is applicable only for greenfield projects.

What documents are required for application?+

Documents include constitution of business, business details (PAN, GST, promoter profiles, annual reports for 3 years), credit history, key personnel details, net worth certificate, financial details for 3 years, R&D facility, project details, domestic value addition, project report for the eligible product, and application fee details.

NaukriZila is not a government website. Apply only on the official portal; never pay anyone to apply for a government scheme. Source: myScheme (Government of India)