Pharma MSMEs get more time for PLI investments
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The government gave pharma MSMEs an extra year to meet investment commitments under the production-linked incentive scheme.
- ✓Companies now have until FY27 to finish their promised investments.
- ✓Experts said the extension helps smaller drugmakers overcome difficulties in arranging funds for capacity expansion and upgrading facilities to meet necessary quality standards.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Financial Express
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
In a relief to pharma MSMEs, the government has given them an extra year to meet their investment commitments under the production-linked incentive (PLI) scheme. Companies will now have until FY27 to complete their promised investments. The deadlines for meeting each of the earlier investment milestones have also been extended by one financial year.
Under the original guidelines issued in June 2021, participating MSMEs were required to achieve 20% of their committed investment by FY22, 40% by FY23, 60% by FY24, 80% by FY25 and the full investment by FY26. The investment was to be made in stages over five years, allowing companies time to build or expand their manufacturing facilities.
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Financial Express
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