PLI norms for medical devices projects revised
Only Greenfield medical devices projects eligible for incentives
- Only cos, LLPs registered in India eligible
- Willful defaulter or defaulter not eligible
- Incentives subject to investments, incremental sales
New Delhi: The government has revised the prerequisite conditions for the projects and companies in the medical devices sector to avail benefits of the production-linked incentive (PLI) Scheme. It should be a Greenfield project as defined, official sources told Bizz Buzz. The Department of Pharmaceuticals defines a project as Greenfield, when the committed investment is proposed to be made by the applicant under the PLI scheme in a new production facility or in a new plant in the premises of an existing production facility, they added.
Further, separate records shall be maintained for the new plant in the premises of an existing production facility for the purpose of the scheme.
Only companies and limited liability partnerships registered in India will be allowed. The applicant should not have been declared as bankrupt or willful defaulter or defaulter or reported as fraud by any bank or financial institution or non-banking financial company.
The eligibility for incentives shall be subject to the committed investment and incremental sales of manufactured goods (covered under target segments) over the base year.
An applicant must meet the criteria of committed investment and minimum threshold sales for the year under consideration to be eligible for disbursement of incentive for that year. In case an applicant doesn’t meet criteria of committed investment and minimum threshold sales for any given year, the applicant shall not be eligible for disbursement of incentive for that particular year. However, the applicant will not be restricted from claiming incentive for subsequent years during the tenure of the scheme -that is, 2026-27.
For the purpose of determining eligibility of an applicant under the PLI scheme, in order to meet the criteria of committed investment for any year, the cumulative value of investment done till such year (including the year under consideration) over the base year shall be considered.
Eligibility under the PLI Scheme shall not affect eligibility under any other scheme and vice-versa, sources said.