The government has given approval to drug firms including Aurobindo Pharma and Karnataka Antibiotics & Pharmaceuticals (KAPL), Kinvan under the PLI scheme for promotion of domestic manufacturing of critical bulk drugs.

The setting up of plants under the scheme will lead to a total committed investment of Rs 3,761 crore by the companies and employment generation for around 3,825 people, the Ministry of Chemicals and Fertilizers said in a statement.

The applications of Aurobindo Pharma (through Lyfius Pharma) have been approved for setting up plants for the production of Penicillin G, and 7-ACA, with committed production capacity of 15,000 MT and 2,000 MT, respectively. The committed investment for Penicillin G is Rs 1,392 crore, and for 7-ACA is Rs 813 crore, it added.

The approval has also been given to Aurobindo Pharma (through Qule Pharma) for setting up plant for production of Erythromycin Thiocyanate (TIOC), with committed production capacity of 1,600 MT at a committed investment of Rs 834 crore.

Karnataka Antibiotics & Pharmaceuticals Ltd (KAPL), a Government of India enterprise, has been accorded the approval for production of 7-ACA, with a committed production capacity of 1,000 MT at a committed investment of Rs 275 crore, the statement said.

Kinvan has also been given the approval for setting up the production facility for clavulanic acid, with a committed production capacity of 300 MT at a committed investment of Rs 447.17 crore, it added.

“The commercial production is projected to commence from April 1, 2023, and the disbursal of production linked incentive by the Government over the six years period would be up to a maximum of Rs 3,600 crore. Setting of these plants will make the country self-reliant to a large extent in respect of these bulk drugs,” the ministry said.

The PLI scheme aims at promotion of domestic manufacturing of drugs/KSM/APIs by setting up greenfield plants with minimum domestic value addition in four different target segments with a total outlay of Rs 6,940 crore for the period 2020-21 to 2029-30, it added.

“The Target Segment-I includes four eligible products, viz., Penicillin G; 7-ACA; Erythromycin Thiocyanate (TIOC) and Clavulanic Acid, in which the country is presently fully import-dependent, were considered on priority as per the decided evaluation and selection criteria,” the statement said.

Further, applications under the other three segments are proposed to be taken up for approval in the next 45 days, it added.