India planned Rs.2500 crore scheme for Covid-19 vaccine production
The Government of India is planning to unveil a Rs 2,500-crore financial assistance programme with an aim to boost domestic production of vaccine and enhance self-reliance amid a resurgence of Covid cases in neighbouring China.
The proposal to ramp up production of covid-19 vaccine is similar to the existing production-linked incentive (PLI) schemes. The assistance might be part of the budget and would aim to reduce import dependency for filters, cassettes and cartridges used in vaccine manufacturing and increase production of immunisation shots in the country.
The Budget allocation is anticipated at Rs 2,500 crore to expand atmanirbharta (self-reliance) in vaccine manufacturing.
The central government has been pursuing this project for a year with multiple departments like finance and biotechnology.
In 2021, the Department of Pharmaceuticals launched three PLI schemes —bulk drugs with an outlay of Rs 6,940 crore, medical devices (Rs 3,420 crore) and pharmaceuticals Rs 15,000 crore) for helping cut dependency on China.
In March, the government extended the last date for applications for manufacturing Active Pharmaceuticals Ingredients (APIs) under the same PLI scheme.
What is PLI scheme?
The Production-Linked Incentive or PLI scheme intends to give companies incentives on incremental sales from products manufactured in domestic units.
It also known as Performance-linked incentives which give companies incentives on incremental sales from products manufactured in domestic units.
It has also designed for boosting the manufacturing sector with reduction of imports.
Bulk drug parks:
The Centre is also executing a scheme for bulk drug parks for pharma and medical device firms.
‘In-principle’ approval to three States Himachal Pradesh, Gujarat and Andhra Pradesh has been given by the Department of Pharmaceuticals under the Scheme for “Promotion of Bulk Drug Parks.”
With a financial outlay of Rs 3,000 crores notified in 2020 to the scheme for providing financial assistance to three States for establishing Bulk Drug Parks and bring down the cost of manufacturing of bulk drugs.