PLI Scheme for Bulk Drugs — 5%–20% Incentives on KSM, DI & API Sales — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.