Faster PLI incentives for pharma cos now
Govt relaxes norms on PLI scheme to speed up disbursement of incentives on quarterly, half-yearly basis as against current annual mode; Sidbi is the PMA for Rs15,000-cr scheme
New Delhi: The central government has eased the operational guidelines for the production-linked incentive (PLI) scheme for pharmaceuticals, ensuring that businesspersons receive the benefits sooner than it is at present.
Earlier, an applicant could submit a claim for disbursement of incentive only on an annual basis. Now, in a bid to help businesspersons in terms of liquidity, the government has allowed them to submit claims for disbursement of incentives on quarterly, half-yearly, and annual bases, official sources told Bizz Buzz.
Earlier, claims could be filed along with supporting documents within one month of the closure of the given financial year. Now, claims for disbursement of incentive can be filed immediately after the end of the quarter, six months, or year, as the case may be.
There has been no change in mode of disbursal. So, if the claim is found to be in order, 75 per cent of it shall be released and the remaining 25 per cent after submission of final audited accounts of the company.
Earlier, the Project Management Agency (PMA) was stipulated to process a claim for disbursement of incentive within 60 days from the date of receipt of the claim and make appropriate recommendations to the Department of Pharmaceuticals. Now, the PMA will do that within 30-45 days from the date of the receipt of a claim.
The PLI scheme for pharmaceuticals, announced in November 2021, provides financial incentives on the incremental sales (over the base year) of pharmaceutical goods and in-vitro diagnostic medical devices. The applicants are selected on pre-defined selection criteria.
The incentives will be paid for a maximum period of six years for each participant, depending upon the threshold investments and the sales criteria to be achieved by the applicant. The government earmarked incentives worth Rs15,000 crore for the scheme. The Small Industries Development Bank of India (Sidbi) is the PMA for the Scheme.