Government invites applications under new PLI scheme for medical device manufacturing

The Ministry of Chemicals and Fertilizers has invited new applications under the Production Linked Incentive (PLI-MD) scheme to promote local manufacturing of medical devices. The tenure of this scheme has now been extended until 2035-36. An outlay of approximately ₹2700 crore is available under this scheme. Notably, applicants will be able to submit their applications through an online portal that will become operational in the next 10 days.

According to a report from PIB Delhi, several simplifications have been introduced in the eligibility criteria and the incentive procurement process based on experiences from the first phase of the scheme. To enhance the Ease of Doing Business, the guidelines have been made more investor-friendly. The requirement for a minimum sales threshold to receive incentives has been abolished, and the minimum investment requirement has also been reduced. Applicants can apply for any number of applications in one or more target segments, and the application window will remain open continuously for a long period.

Applicants will be given 3 years to set up manufacturing facilities in any of the 4 target segments under this scheme. These segments include medical consumables, disposables and implants (TS 1), critical components (TS 2), high-end medical devices that are currently in the early stages of local manufacturing (TS 3), and high-end medical devices that are currently only assembled in the country (TS 4). The incentive rate will be ~5% on average for TS 1, ~9% for TS 2 and TS 3, and 6% for TS 4.

In the consumables and disposables segment, the focus will be on production scale and world-class quality. Meanwhile, priority will be given to value chain integration in TS 3 and TS 4 to enhance the competitiveness and quality of 'Made in India' devices. Focusing on critical component manufacturing will help achieve value chain integration and also provide momentum to the MSME sector.

The objective of PLI-MD 2.0 is to fulfill the vision of Atmanirbhar Bharat and Make in India, develop indigenous supply chains, attract investment, generate employment, and reduce the prices of medical devices. The scheme aims to promote deep manufacturing of high-end equipment such as 3T MRI, PET-CT, ultrasound probes and consoles, and high-throughput IVD analyzers, which are currently not manufactured in the country.

This scheme was launched in 2021-22. So far, through this scheme, local manufacturing of more than 60 high-end medical devices and components, including X-ray tubes and detectors, 1.5T MRI, LINAC, CT scanners, mammography machines, cathlabs, orthopedic and cardiac implants, and dialyzers, has been achieved. As a result of this scheme, production worth more than ₹16,000 crore has been generated.