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Cabinet Approves Promoting Domestic
Manufacturing Of Medical Devices
The Union Cabinet chaired by the Prime Minister, Narendra
Modi has approved following schemes:
1. The scheme on Promotion of Medical Device Parks for
financing Common Infrastructure Facilities in 4 Medical Device Parks with
financial implications of Rs. 400 crore.
2. The Production Linked Incentive (PLI) Scheme for promoting
domestic manufacturing of medical devices with financial implications of Rs.
3,420 crore.
• Production Linked Incentive Scheme
1. The Medical Device sector suffers from a cost of
manufacturing disability of around 12% to 15%, vis-a-vis competing economies,
among other things, on account of lack of adequate infrastructure, domestic
supply chain and logistics, high cost of finance, inadequate availability of
quality power, limited design capabilities and low focus on R&D and skill
development, etc. There is, thus, a need for a mechanism to compensate for the
manufacturing disability.
2. The Scheme aim to boost domestic manufacturing by
attracting large investments in medical device sector. Under the Scheme,
incentive @ 5% of incremental sales over base year 2019-20 will be provided on
the segments of medical devices identified under the Scheme.
Implementation:
The Scheme for Promotion of Medical Device Parks will be
implemented by a State Implementing Agency (SIA). The PLI
Scheme for promoting domestic manufacturing will be
implemented by a Project Management Agency (PMA) to be nominated by Department
of Pharmaceuticals. The target is to provide financial assistance for Common
Infrastructure Facilities for 04 Medical Device parks. The target for PLI Scheme
is to provide assistance to about 25-30 manufacturers under the following
categories of medical devices: -
1. Cancer care/Radiotherapy medical devices,
2. Radiology & Imaging medical devices (both ionizing & nonionizing radiation
products) and Nuclear Imaging Devices,
3. Anesthetics & Cardio-Respiratory medical devices including Catheters of
Cardio Respiratory Category & Renal Care Medical Devices and
4. AII Implants including implantable electronic devices like Cochlear Implants
and Pacemakers.
(
https://www.biospectrumindia.com/news/22/16011/cabinetapproves-promoting-domestic-manufacturing-of-medicaldevices.html
, 24 March 2020 ).
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