Government invites fresh applications under Rs 2,700 crore medical device PLI scheme

The government, on Tuesday, invited fresh applications under the Production Linked Incentive (PLI) Scheme for Promoting Domestic Manufacturing of Medical Devices, which has been extended until 2035-36, with an outlay of around Rs 2,700 crore.

Applicants can submit applications through an online portal, which is expected to become operational within the next 10 days.

Also Read: No one should be left behind in efforts to tackle climate change: India at COP31


Launched in 2020-21, the scheme has led to domestic manufacturing of more than 60 high-end medical devices and components, including MRI machines, CT scanners, X-ray tubes and detectors, LINAC, mammography machines, cardiac and orthopaedic implants, and dialyzers. Production under the scheme has exceeded Rs 16,000 crore so far.

The government has simplified eligibility conditions and the process for claiming incentives based on the experience of the scheme's first phase.

Applicants will get three years to set up manufacturing facilities across four target segments covering medical consumables, disposables and implants; critical components; high-end devices with limited domestic manufacturing; and high-end devices that are currently only assembled in India.

Also Read: India, US vow to jointly act against emerging drug threats

The incentive rate will average around 5% for the first segment, 9% for the second and third segments, and 6% for the fourth segment.

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

The revised scheme, PLI-MD 2.0, aims to strengthen domestic supply chains, attract investment, generate employment and improve the quality and global competitiveness of Indian-made medical devices.

It will also support domestic manufacturing of high-end equipment such as 3T MRI machines, PET-CT scanners, ultrasound probes and consoles, and high-throughput IVD analysers, which are not currently manufactured in the country.