Production Linked Incentive (PLI) Scheme for Bulk Drugs (KSMs, Drug Intermediates and APIs)

What is the PLI Scheme for Bulk Drugs?

The Production Linked Incentive (PLI) Scheme for Bulk Drugs (Key Starting Materials, Drug Intermediates and Active Pharmaceutical Ingredients) is a central sector scheme of the Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers. According to the Department, the scheme has a total outlay of Rs 6,940 crore for the period FY 2020-21 to FY 2029-30.

The PLI Scheme for Bulk Drugs exists to reduce India's heavy import dependence for the basic raw materials of medicine manufacturing. India is a global leader in finished formulations, but imports a large share of the bulk drugs that go into them. The scheme rewards companies that set up greenfield plants to make these materials domestically.

Main objectives

• Attain self-reliance in 41 critical bulk drugs identified as high import-dependence.
• Reduce reliance on imports of KSMs, Drug Intermediates and APIs.
• Build domestic manufacturing capacity through greenfield investment.
• Ensure a secure, affordable supply chain for essential medicines.

What does the PLI Scheme for Bulk Drugs cover?

The scheme covers 41 identified critical bulk drugs organised into four target segments, per the Department of Pharmaceuticals guidelines. Each segment is named for its production route:

The list was drawn from bulk drugs where India carries the highest import dependence, especially fermentation-based products such as penicillin G, 7-ACA, erythromycin and clavulanic acid, whose domestic manufacturing had almost disappeared. Only greenfield (new) plants are eligible, and a company must commit to the minimum domestic value addition set for its target segment. A single applicant may hold approval for more than one product, but each product is appraised, sanctioned and paid separately against its own committed capacity.

How much does the PLI Scheme for Bulk Drugs provide?

The scheme pays selected companies an incentive linked to their incremental sales of the eligible bulk drug over the base year of 2019-20, made at the committed greenfield plant. The rate depends on the target segment:

Each approved product draws the incentive for six years, and the total government payout across all approved projects is capped at about Rs 6,000 crore within the Rs 6,940 crore outlay. Depending on the scale of investment and production, cumulative incentives for an eligible manufacturer typically range from Rs 5 crore to Rs 50 crore. Payment is released only after the company crosses its committed investment threshold and meets the minimum domestic value-addition condition for its segment to 90% for fermentation, 70% for chemical synthesis. A company that under-produces or misses its value-addition target for a year forfeits the incentive for that year rather than the whole scheme term.

Who is eligible for the PLI Scheme for Bulk Drugs?

A company can apply if it:

• Is a company registered in India setting up a greenfield plant for one or more of the 41 eligible critical bulk drugs.
• Meets the net-worth and financial-capability criteria in the guidelines.
• Commits to the minimum domestic value addition and production thresholds for its target segment.

You are not eligible if:

• You are an individual, student or job seeker seeking a personal grant. The PLI Scheme for Bulk Drugs is a company incentive scheme with no individual benefit.
• Your product is not among the 41 notified critical bulk drugs.
• Your project is not a greenfield plant, or cannot meet the value-addition threshold for its segment.

Anyone offering personal "Bulk Drug PLI registration" to individuals for a fee is running a scam. The scheme has no citizen application.

How to apply for the PLI Scheme for Bulk Drugs

The PLI Scheme for Bulk Drugs has no citizen application; the process is entirely for companies and is run online through IFCI Ltd, the Project Management Agency appointed by the Department of Pharmaceuticals:

1. Register your company on the PLI Bulk Drugs portal operated by IFCI at plibulkdrugs.ifciltd.com, which hosts the scheme guidelines and the application system.
2. Identify the target segment and eligible bulk drug your greenfield plant will make, and confirm the applicable minimum domestic value addition to 90% for fermentation, 70% for chemical synthesis.
3. Prepare the detailed project report, audited financials and land/plant plan for the greenfield project, showing the committed investment and capacity.
4. Submit the online application within the notified round, with the required documents and application fee.
5. Face appraisal by the Project Management Agency and the supported Committee, which scores technical capability, financial strength and the realism of the value-addition commitment.
6. If selected, execute the agreement, commission the plant, and claim the incentive each year against verified production and incremental sales.

Note: the main application rounds have closed and most selected projects are being commissioned or are already in commercial production. The Department has periodically reopened limited rounds for specific unsubscribed products — for example, a Round-6 was opened in early 2026 inviting applications for meropenem and ritonavir through March 2026. Confirm the current status on the IFCI portal before acting on any claim about a reopened window.

Progress so far

According to the Department of Pharmaceuticals and IBEF, 48 projects covering 33 bulk drugs had been approved as of early 2026, attracting committed investment of about Rs 4,814 crore: ahead of the roughly Rs 4,322 crore originally committed. The approved projects have created domestic manufacturing capacity for 26 APIs, with cumulative sales of over Rs 2,700 crore and exports of the order of Rs 500 crore reported by the Department. Fermentation-based products such as penicillin G, which India had stopped making domestically for years, have restarted commercial production under the scheme. Because these figures are revised as projects come online, confirm the latest numbers on the IFCI portal or in the most recent PIB release before relying on them.

The PLI Scheme for Bulk Drugs is one of three linked Department of Pharmaceuticals schemes, alongside the PLI Scheme for Pharmaceuticals and the PLI Scheme for Medical Devices, together targeting self-reliance across the pharmaceutical value chain.

Why does the domestic value-addition condition matter?

The minimum domestic value addition condition is central to the PLI Scheme for Bulk Drugs. Requiring at least 90% for fermentation-based segments and at least 70% for chemical-synthesis-based segments ensures the manufacturing actually happens in India: from the earliest raw materials through to the finished bulk drug, rather than importing near-finished material and doing only the last step domestically. This is what makes the scheme a genuine import-substitution measure for the 41 critical bulk drugs it targets.

How does the PLI Scheme for Bulk Drugs differ from a subsidy?

The PLI Scheme for Bulk Drugs is a performance-linked incentive, not an upfront grant. Three features set it apart:

• Greenfield only. Support goes only to new plants, so the scheme adds fresh domestic capacity rather than shifting existing production.
• Value-addition gated. A company must meet the minimum domestic value addition for its target segment to qualify for incentives.
• Paid against production and sales. Incentives are released against verified production and sales of the eligible bulk drug, not against promises.

Help and where to verify details

There is no citizen helpline for the PLI Scheme for Bulk Drugs because it has no individual application. Companies raise queries with IFCI Ltd, the Project Management Agency, at bdpli@ifciltd.com, or with the Pharma Bureau of the Department of Pharmaceuticals at pharma-bureau@gov.in. The scheme guidelines, the list of 41 eligible bulk drugs, the four target segments and the list of selected companies are published on the IFCI portal at plibulkdrugs.ifciltd.com and in PIB releases.

Treat any offer of personal "bulk drug PLI registration", any demand for a fee to "add your name", or any request for OTPs or bank details in the scheme's name as a scam. The scheme deals only with registered companies, never with individual beneficiaries.