The proposed measure is a part of the Centre's Rs 6,940 crore production-linked incentive (PLI) scheme
The government might set a 30 percent limit on imports of raw materials for bulk drugs such as penicillin-G, vitamin B1 and paracetamol.
The proposed measure is a part of the Centre's Rs 6,940 crore production-linked incentive (PLI) scheme, which aims to lower dependence on Chinese imports, according to a Mint report.
"We understand that the APIs (active pharmaceutical ingredients) cannot be 100 percent produced domestically. Companies will have to import some raw materials. So, we will allow them a 30% import limit under the scheme," a government official told the publication.
Moneycontrol could not independently verify the story.
The revised norms will be included in the Department of Pharmaceuticals' guidelines for PLI and manufacturing clusters of bulk drugs and medical devices, Mint reported.
Union minister for Chemicals and Fertilizers DV Sadananda Gowda is expected to make an announcement on the subject on July 27, the report said.
The government revised guidelines will also specify eligibility and selection criteria for companies under the PLI scheme and for states under bulk drug park schemes, the report added.
"After the notification of the guidelines, companies will be given three months to apply for the PLI scheme," the official cited above told Mint.