CII body calls for expansion of PLI for medical devices to more products

CII's medtech group to ask govt for strict policy on import of refurbished devices, incentives in R&D, and enhanced rebate on export duties

The production-linked incentive (PLI) scheme for the medical technology sector, currently available for select medical devices, needs to be extended across more products, CII National Medical Technology Forum Chairman Himanshu Baid told Business Standard on Friday.

 

The industry body is looking to request the government to extend the PLI scheme by an additional two to three years and expand the scope of the scheme by adding 358 more devices, which are exempted from the public procurement order (PPO) list.

 

PPO is a set of guidelines for the procurement of medical devices and goods in India, which favours domestic manufacturers to promote Make in India.

 

 

“There is a list of 358 high-technology devices which the government has allowed for import. The government should look at giving special incentives and technology support to domestic manufacturers to achieve sufficiency here and reduce import dependence,” he added.

 

He said that under the current PLI scheme for medical devices, only 28 companies have been allotted projects. “While the scheme has an outlay of Rs 3,420 crore from FY20-21 to FY27-28, only 10 to 20 per cent of the fund has been utilised,” he added.

 

The demand, he said, stems from the fact that two years of the scheme were lost to COVID-19, and the inclusion of more devices could help domestic manufacturers gain a hold in the devices that India is currently importing.

 

“Today, we are importing almost 60 to 70 per cent of our medical equipment needed in the country, whereas our manufacturing is still very low, with only around 30 per cent manufactured in the country,” Baid said.

 

To counter this, the industry body will ask the government to provide medtech companies with special incentives on research and development and the enhancement of remission of duties under the Commerce Ministry’s RoDTEP scheme for exports to 2 to 2.5 per cent, from the current rate of 0.5 per cent.

 

“There are a lot of hidden costs in manufacturing in the country. A 2 to 2.5 per cent incentive would be good enough to help us get through those hidden costs and be competitive,” Baid said.

 

The CII Medtech Committee will also be looking to conduct joint workshops with the Department of Pharmaceuticals (DoP) to address concerns and queries regarding the new Uniform Code for Marketing Practices in Medical Devices (UCMDMP).

 

“While the guidelines are very well laid out and in the right spirit, the industry is confused about the implementation of this scheme. We will try to get around the process and ensure ease of doing business,” he said.

 

Baid added that there remains confusion regarding how to give training to doctors and healthcare practitioners on new devices.

 

CII Medtech Committee to ask govt for strict policy on refurbished devices

 

The industry body’s committee has also discussed asking the government to form a concrete policy on the import of refurbished or second-hand medical devices, which can be dangerous to patients’ lives and also affect domestic businesses.

 

“We will recommend a policy to the government from CII’s side that is patient-centric first and then about the industry. We have formed a group which will be taking care of that,” he said.

 

This comes after several medical device organisations last month raised concerns over the import of pre-owned, refurbished high-end and high-value (HEHV) medical equipment, such as CT scanners, MRI machines, and robotic assistance systems, into India. They claimed that this move could severely harm the domestic industry, which is still in its nascent stage.

 

“Discussion will also be held with the government to bring regulations against the reuse of devices that compromise patient safety,” Baid said.