BACKGROUND: The Medical Device sector in India suffers from a considerable cost of manufacturing disability I competing economies, inter alia, on account of lack of adequate infrastructure, domestic supply chain and logistics, high cost of finance, inadequate availability of power, limited design capabilities and low focus on research and development (R&D) and skill development etc.
As a mechanism to compensate for this manufacturing disability in order to ensure a level playing field for the domestic manufacturers of medical devices the Government of India has come out with a scheme called ‘Production Linked Incentive Scheme (PLI) for promoting domestic manufacturing of Medical Devices’. The Scheme proposes a financial incentive to boost domestic manufacturing and attract large investments in the Medical Device Sector
SALIENT FEATURES:
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- It is a Central Sector Scheme.
- Applicant: Any company registered in India, proposing to manufacture goods under target segment.
- Applicability: Scheme is applicable only for Greenfield projects. (A project wherein committed investment is proposed to be made by the applicant under this Scheme in a new production facility or in a new plant in the premises of an existing production facility).
- Eligible Product: Good manufactured in India and covered under one of the Target Segments.
- Target Segments: Target Segment shall mean one of the four segments viz.
- Cancer care / Radiotherapy medical devices
- Radiology & Imaging medical devices (both ionizing & non-ionizing radiation products) and Nuclear Imaging devices
- Anaesthetics & Cardio-Respiratory medical devices including Catheters of Cardio Respiratory Category & Renal Care medical devices
- AII Implants including implantable electronic devices
- Investment in the target segment:
- Expenditure incurred on new Plant, Machinery, Equipment and Associated Utilities.
- Expenditure incurred on new Research and Development (R&D).
- Expenditure related to Transfer of Technology (ToT) Agreements.
- Expenditure incurred on Land and Building.
- Tenure of the Scheme: The tenure of the Scheme is from Financial Year 2020-21 to 2027-28.
- Implementation: The Scheme will be implemented through a Project Management Agency (PMA) which will be responsible for providing secretarial, managerial and implementation support and carrying out other responsibilities as assigned by DoP from time to time.
- Review: The Empowered Committee (EC) will consider applications, as recommended by the PMA, for approval under the Scheme. The EC may seek such additional information, as considered necessary for approval. The EC will conduct a periodic review of selected applicant with respect to their investments, employment generation and production under the Scheme.
