Approvals were made in the ninth meeting of the empowerment committee
The government has approved eight companies under a manufacturing-linked incentive (PLI) program to boost domestic production of medical devices, the Department of Chemicals and Fertilizers said on Thursday.
The approvals were made during the ninth meeting of the empowerment committee held on November 25 after reviewing all applications in accordance with the program’s guidelines, the department said in a statement.
“The establishment of these eight factories will result in a total committed investment of Rs 260.4 by companies and the creation of approximately 2,599 jobs. Commercial production is expected to commence from April 1. 2023 onwards,” it added.
With this, the total number of applications approved in both rounds aggregated 21 applicants with a committed investment of Rs 1,059.33 crore and job creation around 6,411, the statement noted.
It added that the establishment of these factories would make the country autonomous to a large extent in specific target segments in the medical device sector.
With the goal of boosting domestic production and attracting large investments in the medical device sector, the Drug Administration of Vietnam has launched a PLI plan to ensure a level playing field for medical device manufacturers in the world. with a total financial expenditure of Rs 3,420 crore for the period 2020-21 to 2027-28.
In a separate statement, the ministry said the empowered committee had also approved various candidates in the bulk drugs segment.
The establishment of eight factories will result in total committed investment of around Rs 151.12 crore by companies and job creation of around 1,951, the statement noted.
It added that commercial production of these plants is expected to commence from April 1, 2023 onwards. “With this, the total number of applications approved in both rounds aggregates to 50 applicants with a committed investment of Rs 4,498.38 and job creation of approximately 10,743. The establishment of these factories will makes the country autonomous to a large extent for this large number, the ministry said.
Currently, India is significantly dependent on imports of basic raw materials – bulk drugs used to make medicines. In some specific bulk drugs, the dependence on imports is 80 to 100%.
