Govt Invites Fresh Applications Under Rs 2,700 Crore Medical Devices PLI Scheme

New Delhi, Nov 11 (KNN) The Government of India has invited fresh applications under the Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices (PLI-MD), with the scheme extended until 2035-36 and an outlay of approximately Rs 2,700 crore available for the new phase.

The online application portal is expected to become operational within the next 10 days, allowing interested applicants to submit proposals for setting up or expanding domestic manufacturing facilities.

Launched in 2020-21, the PLI-MD scheme has facilitated domestic manufacturing of more than 60 high-end medical devices and components, including X-ray tubes and detectors, 1.5T MRI machines, linear accelerators (LINAC), CT scanners, mammography machines, Cathlab equipment, orthopaedic and cardiac implants, and dialysers.

The scheme has resulted in production worth more than Rs 16,000 crore, according to the government.

Four Target Segments Identified

Based on experience from the first phase, the government has simplified eligibility conditions and procedures for claiming incentives under the revised scheme.

Applicants will be allowed three years to establish manufacturing facilities across four target segments: TS 1: Medical consumables, disposables and implants; TS 2: Critical components; TS 3: High-end medical devices where domestic manufacturing is currently at a nascent stage; and TS 4: High-end medical devices that are presently only assembled in India.

The tapering incentive rates will average around 5 per cent for TS 1, 9 per cent for TS 2 and TS 3, and 6 per cent for TS 4.

The consumables and disposables segment will focus on developing manufacturing scale and ensuring world-class quality. For TS 3 and TS 4, priority will be given to value-chain integration to improve the competitiveness and quality of domestically manufactured medical devices.

Relaxed Eligibility Norms To Support MSMEs

The scheme places emphasis on critical component manufacturing to strengthen domestic supply chains and support the MSME sector.

The minimum sales threshold for claiming incentives has been discontinued, while the minimum investment requirement has also been reduced. Applicants will be allowed to submit multiple applications across one or more target segments, with the application window remaining open continuously over an extended period.

The revised guidelines are aimed at improving ease of doing business and making the scheme more investor-friendly.

Focus On High-End Medical Technology

PLI-MD 2.0 aims to strengthen domestic manufacturing under the Atmanirbhar Bharat and Make in India initiatives, attract investments, generate employment and improve the quality of Indian-made medical devices.

The scheme also seeks to reduce the cost of medical devices and enhance India's global competitiveness in high-end medical technologies.

It will focus on deep manufacturing of medical devices and high-end equipment such as 3T MRI machines, PET-CT scanners, ultrasound probes and consoles, and high-throughput in-vitro diagnostic (IVD) analysers, which are currently not manufactured in the country.

(KNN Bureau)