Aurobindo, Karnataka Antibiotics, and Kinvan first to get PLI for drugs
The Indian government has declared the listing of the first 3 companies that have qualified for financial support under the production linked incentive (PLI) scheme to promote domestic production of crucial key starting materials (KSMs), drug intermediates, and APIs. The companies include – Aurobindo Pharma, Hyderabad; Kinvan Pvt Ltd, Mumbai; and Karnataka Antibiotics and Pharmaceuticals.
Aurobindo Pharma has pledged Rs 3,039 crores’ financial investment to establish manufacturing centers for 3 qualified items. Kinvan will fund Rs 447.17 crores to establish a 300 MT facility to manufacture Clavulanic Acid. Karnataka Antibiotics and Pharmaceuticals Limited will certainly establish a 1,000 MT manufacturing capacity to manufacture 7-ACA (a chemical required to manufacture cephalosporin antibiotics and intermediates) with a fund of Rs 275 crores. With Lyfius Pharma, Aurobindo will certainly establish a 15,000 MT capacity Penicillin G manufacturing center and a 2,000 MT capacity center for 7-ACA with a fund of Rs 1,392 crores and Rs 813 crore, specifically. Aurobindo has likewise pledged to establish a 1,600 MT capacity Erythromycin Thiocyanate (TIOC) production center at Rs 834 crores via its partner Qule Pharma.
Declaring the decision, the chemical ministry stated that the establishment
of these centers would certainly result in a complete committed investment of Rs 3,761 crores by the firms and employment generation of around 3,825. The commercial production is forecasted to commence from 1 April 2023, and the disbursement of production associated incentive by the govt in 6 years period would be around Rs 3,600 crores. The setting of these facilities will certainly make the nation self-reliant to a huge extent regarding these bulk drugs.The govt had actually announced the PLI plan for bulk drugs and KSMs intending to obtain self-reliance and decrease import dependence of such items in the nation. The plan asks for the establishing greenfield plants with the least domestic value addition in 4 various target sectors (in 2 fermentation-based – at least 90% and the 2 chemical synthesis based – a minimum of 70%) with an overall investment of Rs 6,940 crores in 2020-21 to 2029-30.
The due date to apply for availing the scheme’s advantages under 4 different target sections ended on Nov 30, 2020. The department of pharmaceuticals claimed that totally it got 215 requests for the 36 products spread over the 4 target sectors. Every application should be processed and determined within a duration of 90 days, i.e., by 28 Feb 2021. The ministry claimed that, while the selection of the target segment-i items – Penicillin G; 7-ACA; Erythromycin Thiocyanate and Clavulanic Acid – where India currently totally import-dependent, is over, applications under the other 3 segments are suggested to be used up for authorization in the following 45 days.
Aurobindo, Karnataka Antibiotics, and Kinvan first to get PLI for drugs
