**Executive Summary**
This document is a response to an unstarred question in Lok Sabha regarding the promotion of domestic production of fertilizers and reduction of dependence on imported Active Pharmaceutical Ingredients (APIs). The response outlines the steps taken by the Government of India, including production-linked incentive schemes (PLI), schemes for promoting bulk drug parks, and initiatives related to fertilizer supply and petrochemical investment regions, with updates as of December 2025. The tenure of PLI schemes extends until financial year 2029-30 for the bulk drugs and financial year 2028-29 for the pharmaceuticals.
**Key Points / Main Content**
* **Promotion of Domestic API Production (PLI Schemes)**
* **PLI Scheme for Bulk Drugs:** Promotes domestic manufacturing of critical Key Starting Materials (KSMs), Drug Intermediates (DIs), and APIs. The scheme has a budgetary outlay of ₹6,940 crore, valid until FY 2029-30. Investment of ₹4,814 crore has been made. Production capacities have been created for 26 KSMs/DIs/APIs.
* **PLI Scheme for Pharmaceuticals:** Enhances manufacturing capabilities and product diversification in the pharmaceutical sector. It has a budgetary outlay of ₹15,000 crore and cumulative investment of ₹41,920 crore made. The tenure is till financial year 2028-29. 726 APIs/KSMs/DIs are being manufactured.
* **Scheme for Promotion of Bulk Drug Parks:** Establishes bulk drug parks with a budgetary outlay of ₹3,000 crore. Three parks have been approved in Andhra Pradesh, Gujarat, and Himachal Pradesh. The total project cost is over ₹6,306.68 crore.
* **Ensuring Fertilizer Supply**
* The Department of Agriculture and Farmers Welfare (DA&FW) assesses the State-wise and month-wise requirements of fertilizers.
* Adequate fertilizer quantities are allocated to States based on DA&FW's requirements.
* Fertilizer movement is monitored through the Integrated Fertilizer Monitoring System.
* Regular video conferences are held to address fertilizer dispatch.
* Urea is provided to farmers at a statutorily notified Maximum Retail Price (MRP) of ₹242 per 45kg bag. The difference between delivered cost and MRP is given as subsidy.
* **Promoting Investment in Chemicals and Petrochemicals**
* **Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR):** Conceptualized as cluster-based development, Three PCPIRs set up at Dahej, Vishakhapatnam-Kakinada, and Paradeep. 2,246 chemical units are functional, with a cumulative investment of ₹3,49,192 crore.
* **Plastic Parks:** Promotes setting up of need-based Plastic Parks with state-of-the-art infrastructure. Grant funding of up to 50% of the project cost to the State Government subject to a ceiling of ₹40 crore per project. 9 Plastic Parks have been approved.
**Impact Analysis**
**Pharmaceutical Companies and API Manufacturers**
* **Impact:** Beneficiaries of the PLI schemes and Bulk Drug Park scheme will receive financial incentives, infrastructure, and support for domestic manufacturing.
* **Action Required:** Invest in new projects or expand existing facilities to take advantage of the PLI schemes and set up units in Bulk Drug Parks.
**Fertilizer Manufacturers and Importers**
* **Impact:** Subsidy support for urea production and distribution.
* **Action Required:** Maintain supply of urea and coordinate with government agencies for distribution.
**Farmers**
* **Impact:** Steady and affordable supply of subsidized fertilizers.
* **Action Required:** Purchase fertilizers through established channels at the subsidized rate.
**State Governments**
* **Impact:** Responsible for distributing fertilizers within the state.
* **Action Required:** Project fertilizer requirements to DA&FW, distribute fertilizers efficiently, and participate in video conferences to address supply issues.
**Chemical and Petrochemical Industries**
* **Impact:** Beneficiaries of the PCPIR scheme to attract investments and build infrastructure.
* **Action Required:** Invest in new projects or expand existing facilities to take advantage of the PCPIR scheme.
Key Entities Referenced
Ministry of Chemicals and Fertilizers: The primary ministry responsible for the subject matter of the document, specifically domestic production of fertilizers and pharmaceuticals.
Production Linked Incentive (PLI) Scheme for Bulk Drugs: A scheme aimed at promoting domestic manufacturing of critical Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) to reduce import dependence.
PLI Scheme for Pharmaceuticals: A scheme aimed at enhancing India's manufacturing capabilities in the pharmaceuticals sector.
Scheme for Promotion of Bulk Drug Parks: A scheme to establish bulk drug parks in various states to create common infrastructure facilities for bulk drug and API manufacturers.
Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR): Scheme to establish Petroleum, Chemicals and Petrochemicals Investment Regions to attract investment in chemicals and petrochemicals sector.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF PHARMACEUTICALS
LOK SABHA
UNSTARRED QUESTION No. 2487
TO BE ANSWERED ON 13TH FEBRUARY 2026
Promotion of Domestic Production of Fertilizers
2487. Dr. Nishikant Dubey:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) the steps being taken by the Government to reduce dependence on imported Active
Pharmaceutical Ingredients (APIs) and promote domestic production;
(b) the manner in which Government is ensuring a steady and affordable supply of fertilizers
to farmers, especially in remote areas of the country;
(c) whether there are any upcoming policy changes/Government initiatives aimed at boosting
foreign investment in chemical and fertilizer sectors of the country; and
(d) if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND
FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a): The Government of India has taken number of steps to reduce dependence on imported
active pharmaceutical ingredients (APIs) and promote domestic production. These include the
following:
(i) Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of
critical Key Starting Materials (KSMs) / Drug Intermediates (DIs) and Active
Pharmaceutical Ingredients (APIs) in India (also known as PLI scheme for Bulk
Drugs): The scheme is aimed at avoiding disruption in supply of critical APIs used to
make critical drugs for which there are no alternatives by reducing supply disruption
risk due to excessive dependence on single source. The scheme has a budgetary outlay
of ₹6,940 crore. Till December 2025, investment of ₹4,814 crore has already been made
against an investment commitment of ₹4,329.95 crore over the period of six years in
greenfield projects. Further, production capacities have been created for 26
KSMs/DIs/APIs, which were earlier primarily imported. The scheme has resulted in
cumulative sales of ₹2,720 crore reported till December 2025, including exports of
₹527.96 crore, thereby avoiding imports worth ₹2,192.04 crore. The tenure of the
scheme is till the financial year 2029-30.
(ii) PLI Scheme for Pharmaceuticals: The scheme is aimed at enhancing India’s
manufacturing capabilities by increasing investment and production in the
pharmaceuticals sector and contributing to product diversification to high-value goodsin the pharmaceutical sector and incentivises production of high-value medicines such
as biopharmaceuticals, complex generic drugs, patented drugs or drugs nearing patent
expiry, auto-immune drugs, anti-cancer drugs, etc. as well as production of
APIs/DIs/KSMs other than those notified under the PLI Scheme for Bulk Drugs. It has
a budgetary outlay of ₹15,000 crore. As of December 2025, the committed investment
of ₹17,275 crore targeted over the six-year period of the scheme stands substantially
exceeded with cumulative investment of ₹41,920 crore made in both brownfield and
greenfield projects. Further, 726 APIs/KSMs/DIs are being manufactured under the
scheme, including 191 which have been manufactured for the first time under the
scheme. Cumulative domestic sales of APIs/KSMs/DIs produced under the scheme till
December 2025 is worth ₹28,067 crore and thereby contributing to import avoidance.
The tenure of the scheme is till the financial year 2028-29.
(iii) Scheme for Promotion of Bulk Drug Parks: The scheme has a budgetary outlay of
₹3,000 crore, under which three bulk drug parks have been approved and are at various
stages of development in the States of Andhra Pradesh, Gujarat and Himachal
Pradesh, through their respective State implementing agencies. The total project cost
of these parks is over ₹6,306.68 crore, with Central assistance to the tune of ₹1,000
crore each for creation of common infrastructure facilities. These parks envisage land
and utilities such as power, water, effluent treatment plant, steam, solid waste
management and warehouse facilities at a subsidised rate to bulk drug or API
manufacturers for units set up in the park. The State implementing agencies of the
States concerned have also offered fiscal incentives in the form of capital subsidy on
fixed capital investment, interest subsidy, State Goods and Services Tax
reimbursement, exemption of stamp duty and registration charges, etc. Further, the
scheme provides for applicants for allotment of land in the parks to set up units for
manufacturing products prioritised in the PLI Scheme for Bulk Drugs to have priority
in land allotment.
(b): As per the information provided by the Department of Fertilizers, the following steps are
taken by the Government every season for ensuring timely and adequate supply of fertilizers
across the country, including the remote areas:
(i) Before the commencement of each cropping season, the Department of Agriculture
and Farmers Welfare (DA&FW), in consultation with all the State Governments,
assesses the State-wise and month-wise requirement of fertilizers.
(ii) On the basis of requirement projected by DA&FW, the Department of Fertilizers
allocates adequate quantities of fertilizers to States by issuing monthly supply plan
and continuously monitors the availability.
(iii) The movement of all major subsidised fertilizers is monitored throughout the country
by an online web-based monitoring system called the Integrated Fertilizer
Monitoring System.
(iv) Regular weekly video conference is conducted jointly by DA&FW and the
Department of Fertilizers with State Agriculture Department officials, and corrective
actions are taken to despatch fertilizers as indicated by the State Governments.
(v) The distribution of fertilizers within the State is done by the respective State
Government.
(vi) Urea is provided to the farmers at a statutorily notified Maximum Retail Price
(MRP). The MRP of 45kg bag of urea is ₹242 per bag (exclusive of charges towards
neem coating and taxes as applicable). The difference between the delivered cost ofurea at farm gate and net market realization by the urea units is given as subsidy to
the urea manufacturer/importer by the Government of India. Accordingly, all
farmers are being supplied urea at the subsidized rates.
(c) and (d): As per information provided by the Department of Chemicals and Petrochemicals,
various initiatives are being taken to support the sector. The details are as under:
(i) Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR): To attract
investments in chemicals and petrochemicals sector, Department had notified the
Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) Policy. PCPIRs
are conceptualized as cluster-based model of development with common infrastructure
and support services. Three PCPIRs have been set up at Dahej (Gujarat),
Vishakhapatnam-Kakinada (Andhra Pradesh) and Paradeep (Odisha). Currently, 2,246
chemical units are functional in these PCIPRs having a cumulative investment of
₹3,49,192 crore and these regions have generated employment of 3.7 lakh persons.
(ii) Plastic Parks: The Department implements the Scheme for Setting up of Plastic Parks
under the scheme of New Scheme of Petrochemicals. The Scheme promotes setting up
of need-based Plastic Parks with requisite state-of-the-art infrastructure and enabling
common facilities. The objective is to consolidate and synergize the capacities of
downstream plastic processing industry to help increase investment, production and
export in the sector as well as generate employment. Under the scheme, the Government
of India provides grant funding up to 50% of the project cost to the State Government
subject to a ceiling of ₹40 crore per project. In accordance with the Scheme Guidelines,
9 Plastic Parks have been approved so far and the same are at different levels of
implementation.
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