Parl Panel Pushes for PLI Extension for Medical Devices

The panel's recommendations come after thoroughly examining the government's efforts to stimulate growth in the medical devices industry.

Recently, the Parliamentary Panel has advocated for expanding the Production Linked Incentive (PLI) scheme for medical devices, stressing the need to increase the number of beneficiaries to bolster domestic manufacturing. 

This comes after thoroughly examining the government's efforts to stimulate growth in the medical devices industry.

Reportedly, the Parliamentary Panel scrutinized the implementation of the PLI scheme and expressed dissatisfaction with the limited number of beneficiaries, particularly in the pharmaceuticals for in vitro diagnostics (IVD) manufacturing sector. 

It also highlighted the importance of engaging with industry stakeholders across all states and UTs to gather feedback and enhance the scheme's effectiveness. 

Sharing insights, Dr Shashi Tharoor, Member of Lok Sabha, & head, Parliamentary Committee, said, "To make the scheme more effective, there is a need to increase the number of beneficiaries to boost the production of medical devices."

Promoting Domestic Manufacturing

The panel acknowledged the government's efforts to promote domestic manufacturing through the PLI scheme and underscored the importance of adhering to its guidelines. 

It further expressed confidence that the scheme, if implemented diligently, would foster the development of a robust manufacturing ecosystem for medical devices in the country. 

The report, presented at the parliament, highlighted the potential of the PLI initiatives to drive innovation and competitiveness in the medical devices sector.

Assessment of PLI Scheme Performance

The panel's report provided insights into the performance of the PLI scheme, revealing that 26 applicants had been selected out of 64, focusing on encouraging investments in Greenfield projects. 

It noted the substantial investments committed by selected applicants and the commissioning of multiple projects related to critical medical device categories. Following the scheme's launch, the report commended the progress made in initiating the production of high-end medical devices, such as linear accelerators, CT scans, and cardiac cath labs.

In the same vein, recently, the Union Health Minister Dr Mansukh Mandaviya inaugurated 13 of the 26 Greenfield manufacturing plants established under the PLI scheme. 

The inauguration ceremony symbolized a significant milestone in advancing the objectives of the PLI scheme and fostering a conducive environment for investment and innovation in medical device manufacturing.

The report also highlighted the support extended to pharmaceutical companies under the PLI scheme, citing the example of Venus Remedies, a Haryana-based pharmaceutical company. 

Venus Remedies received an initial disbursement of INR 7.5 Cr under the scheme, enabling it to expand its manufacturing infrastructure and diversify its product portfolio.

As a Category C participant, the pharmaceutical company plans to leverage the incentives to strengthen its manufacturing capabilities and venture into the production of complex generics.

The Parliamentary Panel's recommendations underscore the imperative of expanding the PLI scheme for medical devices to accelerate domestic manufacturing and promote innovation in the sector. 

By engaging with industry stakeholders and ensuring adequate support for beneficiaries, the government aims to create a conducive environment for investment and growth in the healthcare industry.