New Delhi, Mar 22 (IANS): The Cabinet has approved a production-linked incentive (PLI) scheme for promoting domestic manufacturing of medical devices, with financial implications of Rs 3,420 crore.

The decision was taken at the Cabinet meeting chaired by Prime Minister Narendra Modi.

The government in a statement said that the Cabinet also approved another promotion of medical device parks scheme worth Rs 400 crore for financing common infrastructure facilities in four medical device parks.

It said that the expenditure to be incurred for the said schemes will be for the next five years i.e. from 2020-21 to 2024-25."The Union cabinet has approved a scheme on promotion of medical device parks for financing common infrastructure facilities in four medical device parks with financial implications of RS 400 crore, and approved the PLI scheme for promoting domestic manufacturing of medical devices with financial implications of Rs 3,420 crore," it said.

The statement said that under the sub-scheme for promotion of medical device parks, common infrastructure facilities would be created in four medical device parks, which is expected to reduce manufacturing cost of medical devices in the country.

"The PLI scheme for promoting domestic manufacturing of medical devices would boost domestic manufacturing and attract large investments in the medical device sector, particularly in the identified target segments. It will lead to expected incremental production of Rs 68,437 crore over a period of five years," it said.

It further said that the schemes have potential to generate an additional employment of 33,750 jobs over a period of five years and reduce import of target segments of medical devices.