PLI Scheme for Bulk Drugs — 5%–20% Incentives on KSM, DI & API Sales
A rolling Government of India subsidy that pays 5% to 20% cash incentives on incremental sales of 41 critical KSMs, DIs and APIs for six years, under a ₹6,940 crore outlay.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Ministry of Chemicals and Fertilizers (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The PLI Scheme for Bulk Drugs is run by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India. It does not hand out a one-time grant. Instead, it rewards manufacturers with a cash incentive worked out on the additional sales they generate by producing critical bulk drug products within the country.
The purpose is to shrink India's reliance on imports for 41 identified Key Starting Materials (KSMs), Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs). These inputs sit at the very start of the pharmaceutical supply chain, so building domestic capacity for them strengthens the sector as a whole — the 41 listed products between them cover 53 critical APIs.
Only greenfield manufacturing projects qualify, which means the scheme is aimed at companies putting up brand-new plants rather than extending facilities they already operate. The Industrial Finance Corporation of India (IFCI) is the designated Project Management Agency (PMA) and looks after implementation and assessment.
The scheme carries a total outlay of ₹6,940 crore and runs across FY 2020-21 to FY 2029-30, with FY 2019-20 treated as the base year for measuring performance. Applications are accepted on a rolling basis, so there is no closing date to race against.
Highlights
- 5% to 20% cash incentive on incremental sales, paid over 6 years
- Covers 41 critical KSMs, DIs and APIs, spanning 53 critical APIs
- Greenfield manufacturing projects only — expansions do not qualify
- Threshold investment from ₹20 crore to ₹400 crore, varying by product segment
- Total outlay of ₹6,940 crore; scheme runs FY 2020-21 to FY 2029-30
- Rolling applications through the IFCI-managed portal, with no fixed deadline
Who can apply
Who can apply
- Manufacturers of critical KSMs, DIs and APIs that are registered in India.
- The project must be greenfield — a new manufacturing facility built from the ground up. Extending or upgrading an existing plant does not qualify.
- Applicants must commit a threshold investment that varies by product segment, ranging from ₹20 crore to ₹400 crore.
Beyond these points, eligibility rests on the product being manufactured, the greenfield nature of the facility and the investment committed.
PLI Scheme for Bulk Drugs — 5%–20% Incentives on KSM, DI & API Sales is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
PLI Scheme for Bulk Drugs — 5%–20% Incentives on KSM, DI & API Sales accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
What recipients get
- A cash incentive calculated on incremental sales of the selected products, paid across 6 years.
- Fermentation-based products: 20% from FY 2023-24 to FY 2026-27, stepping down to 15% in FY 2027-28 and 5% in FY 2028-29.
- Chemical synthesis-based products: a flat 10% from FY 2022-23 through FY 2027-28.
The incentive applies to 41 identified KSMs, DIs and APIs, which together cover 53 critical APIs. It is paid as a subsidy on sales rather than as an equity investment, so no stake is taken in the recipient company. The scheme's overall outlay is ₹6,940 crore.
About the provider
PLI Scheme for Bulk Drugs — 5%–20% Incentives on KSM, DI & API Sales is offered by Ministry of Chemicals and Fertilizers, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Every application goes through a detailed assessment by the Project Management Agency, IFCI.
- IFCI evaluates the application on the basis of the details furnished by the manufacturer.
- The threshold investment committed to the greenfield project is verified against the applicable requirement.
- The projected incremental sales of the identified KSMs, DIs or APIs are examined.
- Statutory Auditor certificates form a critical part of the documentation and are reviewed to confirm compliance with scheme criteria and investment milestones.
Incentives are approved and disbursed only once these checks are cleared.
Documents you’ll need
Before you apply to PLI Scheme for Bulk Drugs — 5%–20% Incentives on KSM, DI & API Sales, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Frequently asked questions
How much funding is available under the PLI Scheme for Bulk Drugs?
There is no single grant figure — support is an incentive worked out on the extra sales you generate. Fermentation-based products earn 20% from FY 2023-24 to FY 2026-27, 15% in FY 2027-28 and 5% in FY 2028-29. Chemical synthesis-based products earn a flat 10% from FY 2022-23 to FY 2027-28. In both cases the incentive runs for six years.
Is there a deadline to apply?
No. Applications are accepted on a rolling basis, so the window stays open throughout the scheme and there is no closing date you need to beat. You can submit through the online portal at any point.
Who is eligible to apply for this scheme?
Manufacturers of critical KSMs, DIs and APIs that are registered in India. Your project has to be greenfield — a new facility rather than an expansion of an existing one — and you must commit to a threshold investment ranging from ₹20 crore to ₹400 crore, depending on the product segment you apply under.
What counts as a greenfield project here?
A greenfield project is a manufacturing plant built from scratch, rather than an upgrade or extension of a plant you already run. The scheme is designed around these fresh investments, which is why brownfield expansions fall outside its scope.
Does the scheme take equity in my company?
No. This is a subsidy-style cash incentive paid against incremental sales, so the government does not acquire a stake and your shareholding is not diluted.
Which products are covered?
41 identified Key Starting Materials, Drug Intermediates and Active Pharmaceutical Ingredients. Collectively these products cover 53 critical APIs. They were picked because India has historically depended on imports for them.
How do I apply, and what is the application fee?
Applications are accepted online only, through the dedicated portal at https://plibulkdrugs.ifciltd.com/login. The fee is ₹1,00,000 for Penicillin G, 7-ACA, Erythromycin Thiocynate (TIOC) and Clavulanic Acid, and ₹50,000 for every other eligible product. It must be paid electronically by NEFT or RTGS to the account IFCI – PLI – Bulk Drugs, Account Number 3859475896, Central Bank of India, IFSC Code CBIN0281410, Nehru Place Branch, New Delhi - 110019.
What documentation is required?
Applicants provide the project details and projections that IFCI reviews. Statutory Auditor certificates are the critical piece of documentation — they are examined to confirm compliance with scheme criteria and to verify investment milestones before any incentive is approved and disbursed.
Who runs the scheme and how long does it last?
It is an initiative of the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India, with IFCI serving as the Project Management Agency for implementation and assessment. The scheme spans FY 2020-21 to FY 2029-30 and uses FY 2019-20 as the base year for calculations.
How does the evaluation of an application work?
IFCI assesses each application on the details the manufacturer furnishes. That covers verifying the threshold investment committed for the greenfield project and evaluating the projected incremental sales of the identified KSMs, DIs or APIs. Statutory Auditor certificates support those claims, and incentives are approved and paid once the criteria and milestones are met.
Can I apply for more than one product under the scheme?
The scheme operates around the 41 identified products, and the application fee differs by product — ₹1,00,000 for Penicillin G, 7-ACA, Erythromycin Thiocynate (TIOC) and Clavulanic Acid, and ₹50,000 for the rest. Each application is assessed on the product, the greenfield facility and the committed investment threshold it relates to.
Is DPIIT recognition required for PLI Scheme for Bulk Drugs — 5%–20% Incentives on KSM, DI & API Sales?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for PLI Scheme for Bulk Drugs — 5%–20% Incentives on KSM, DI & API Sales, though having it can strengthen your application and unlock other benefits.
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