Govt Nears Pen-G Import Price Floor to Boost Domestic API Production, Safeguard PLI Investments

• Government is finalizing a Minimum Import Price (MIP) for Penicillin-G (Pen-G) to support domestic API manufacturing under the PLI scheme.
• The MIP aims to protect Indian producers like Aurobindo Pharma from cheap Chinese imports, ensuring viability of their ₹2,500 crore investment in Pen-G/6-APA project.
• Pen-G is vital for antibiotics like Amoxicillin and Ampicillin; India has been heavily import-dependent, primarily from China.
• A similar MIP was recently set for Potassium Clavulanate (KGA) at $180/kg, supporting Kinvan Pvt. Ltd.'s domestic production.
• Industry associations like IPA and BDMA support the MIP, viewing it as crucial for India's self-reliance in critical APIs, with officials expecting marginal consumer price impact.

Why It Matters: MIP for Pen-G aims to secure India's API self-reliance, protect PLI investments, and counter cheap imports.