With reference to the Lyfius Pharma Penicillin-G facility, consider the following statements: 1. The facility was established in the Kakinada Special Economic Zone (SEZ). 2. The facility has an annual production capacity of 2,500 tonnes. 3. The project was executed under the Production Linked Incentive (PLI) scheme. Which of the statements given above is/are correct?

Lyfius Pharma's ₹2,500 crore Penicillin-G facility to reduce India's import dependence

GS3Economy · S&T · Environment · Security· Industry, investment & MSMEs· Prelims· 23 October 2026

Import substitution and PLI scheme impact: a relevant GS3 case study on pharmaceutical self-reliance.

Why in news

Nara Lokesh highlighted Lyfius Pharma's new Penicillin-G facility in Kakinada SEZ as a step toward reducing India's dependence on imported raw materials.

Background

Lyfius Pharma Private Limited invested ₹2,500 crore to establish a Penicillin-G facility in the Kakinada Special Economic Zone (SEZ). The facility has an annual production capacity of 1,500 tonnes and was inaugurated by PM Narendra Modi in October 2024.

Facts for Prelims

FactLyfius Pharma invested ₹2,500 crore in the Penicillin-G facility.
FactThe facility has an annual production capacity of 1,500 tonnes.
SchemeThe project was executed under the Production Linked Incentive (PLI) scheme.
PlaceThe facility is located in the Kakinada Special Economic Zone (SEZ).

Prelims practice question

With reference to the Lyfius Pharma Penicillin-G facility, consider the following statements:

The facility was established in the Kakinada Special Economic Zone (SEZ).
The facility has an annual production capacity of 2,500 tonnes.
The project was executed under the Production Linked Incentive (PLI) scheme.

Which of the statements given above is/are correct?

(a)2 only
(b)3 only
(c)1 and 3 only
(d)1, 2 and 3

Show answer

Answer: (c) 1 and 3 only — Statements 1 and 3 are correct. Statement 2 is incorrect: The note states the annual production capacity is 1,500 tonnes.

For Mains

Q. Discuss how the Production Linked Incentive (PLI) scheme contributes to India's goal of achieving self-reliance in the pharmaceutical manufacturing sector.

Dimensions to cover in your answer

Supply chain resilience: Reducing vulnerability to global raw material price shocks and supply disruptions
Import substitution: Strengthening domestic manufacturing of Active Pharmaceutical Ingredients (APIs) to improve trade balance

Keywords: Import substitution · Self-reliance · Production Linked Incentive · Pharmaceutical manufacturing · Supply chain resilience

Read the full news →Report a mistake in this note How notes are made Source: The Hindu ↗Also: GS2 · Government policies & schemes

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