PRIP Scheme: Eligibility, Funding, TRL Rules and How to Apply

Written by CA Anand Daga
on October 2, 2026
9:52 am

Introduction: PRIP Scheme

The PRIP Scheme is a ₹5,000 crore R&D funding programme for India’s pharma and medical technology sector. The Department of Pharmaceuticals runs it. Moreover, the second call is now open on the PRIP portal. In addition, a new discovery track offers up to ₹50 crore to startups and MSMEs.

As a result, many founders ask one question: can my company qualify? This guide answers it step by step. First, you will learn what the scheme covers. Next, you will see the PRIP Scheme eligibility rules, funding limits and TRL needs. Finally, you will learn how to apply at Finraja Consultancy Pvt Ltd.

What Is the PRIP Scheme?

PRIP stands for Promotion of Research and Innovation in Pharma MedTech Sector. The Central Government notified it on 16 August 2023. Later, a notification dated 1 October 2025 amended Component B. Therefore, the amended text now governs every new application.

The scheme runs from FY 2023-24 to FY 2029-30. Its outlay splits as follows.

Part	Outlay (₹ crore)
Component A (Centres of Excellence at NIPERs)	700
Component B (financial assistance to industry and startups)	4,200
Administrative cost	100
Total	5,000

Component A builds research centres at seven NIPERs. Component B, however, funds companies directly. Hence, this guide focuses on Component B.

One more point matter. The 2025 amendment replaced the word “incentive” with “financial assistance.” So, official papers now use the second term. In simple words, it is the money the government gives for approved R&D work.

PRIP Scheme Priority Areas

Every project must fall under one of three priority areas:

New medicines: new chemical entities, new biological entities and phytopharmaceutical drugs. Biological entities include monoclonal antibodies, vaccines, and gene and cell therapies.
Complex generics and biosimilars: for example, new drug delivery systems or new claims for CDSCO-approved drugs.
Novel medical devices: devices that CDSCO has not approved before. These include AI/ML software, robotic surgical devices, genetic diagnostics, telemedicine devices and novel in vitro diagnostics.

Besides these, a project may mix a medicine and a device. In that case, the main intended use decides the category.

PRIP Scheme Eligibility: Who Can Apply?

The scheme allow three entity types:

A company registered under the Companies Act, 2013 (one-person and not-for-profit companies are excluded)
A Limited Liability Partnership
A registered partnership firm (sole proprietorships are not eligible)

In addition, early-stage applicants need one more proof. They must hold a valid DPIIT startup certificate or a Udyam registration as an MSME.

However, some applicants are ineligible. For example, an applicant fails if a key managerial person has a conviction for moral turpitude or corruption with a sentence of six months or more. Similarly, insolvency or winding-up proceedings against the applicant or its holding company block eligibility. Moreover, you must disclose any such change in writing without delay.

Finally, watch the group limit. Total assistance to a related group cannot exceed 5% of the scheme outlay, which equals ₹250 crore, unless the Government decides otherwise.

PRIP Scheme TRL Eligibility

Technology Readiness Level (TRL) decides your track:

Early stage: projects at TRL 1, 2 or 3 that move to a higher TRL, up to TRL 5.
Later stage: projects at TRL 4, 5 or 6 that move to a higher TRL.
New Discovery Track: NCE or NBE projects at TRL 1, 2 or 3 that move up to TRL 6 at most.

Notably, the Government may ask for a report that validates your claimed TRL. An agency listed on the portal must issue it. Therefore, assess your TRL honestly before you apply.

PRIP Scheme Funding: Financial Assistance

The table below shows the financial assistance for each track.

Track	Who can apply	Starting TRL	Maximum assistance	Co-funding
Early Stage	Startups, MSMEs	1–3 (up to TRL 5)	₹5 crore per project	None up to ₹1 crore project cost; half of the cost above ₹1 crore
Later Stage	Industry, startups, MSMEs	4–6	₹100 crore, capped at 35% of approved cost	Remainder of the approved cost
Later Stage (Strategic Priority Innovation)	Same as above	4–6	Up to 50% of approved cost	Remainder of the approved cost
New Discovery Track	Startups, MSMEs (NCE/NBE)	1–3 (up to TRL 6)	Up to ₹50 crore per company, project, or portfolio	At least 25% from bona fide institutional investors

Here are three quick examples:

Early stage, ₹3 crore project: The first ₹1 crore needs no co-funding. The applicant funds half of the remaining ₹2 crore. Thus, assistance reaches ₹2 crore.
Later stage, ₹200 crore project: The 35% rule gives ₹70 crore. The applicant arranges ₹130 crore.
Strategic Priority Innovation, ₹100 crore project: Assistance can reach ₹50 crore.

Note that the ₹100 crore ceiling applies only when the project cost reaches about ₹286 crore at the 35% rate.

Co-funding can come from the applicant, promoters, investors, other government bodies, NGOs, or any other person. Strategic Priority Innovations cover areas such as neglected tropical diseases, rare diseases, drug-resistant infections, outbreak pathogens and vaccines. However, total support for them is capped at 20% of the Component B outlay.

How the Money Is Released

The Government pays in four milestone-linked instalments:

Instalment 1: up to 30% of approved assistance, after financial closure and the funding agreement.
Instalments 2 and 3: 20% to 40% each, after milestones 1 and 2.
Instalment 4: at least 15%, paid on a reimbursement basis after project completion.

Additionally, payments go into a project-specific account at a Scheduled Commercial Bank. Also, you must credit co-funding in the same proportion before each instalment.

Benefit-Share: The Clause Many Applicants Miss

The Government receives a share of your commercial earnings from the project. You choose one option when you sign the funding agreement.

Option	Early Stage	Later Stage
Fixed rate	5% of net sales per year, until payments equal the assistance	10% of net sales per year, until payments equal 150% of the assistance
Tiered rate	2% (years 1–3), 4% (years 4–6), 6% (year 7 onward), until payments equal the assistance	4%, 8% and 12% on the same timeline, until payments equal 150%
Share allotment	Shares worth 100% of the assistance	Shares worth 100% of the assistance

The shares are compulsorily convertible preference shares. They convert to equity at first commercialisation. Therefore, startups should model dilution early.

PRIP Scheme for Startups, MSMEs, Pharma Companies and MedTech

PRIP Scheme for startups: Startups can use the early-stage, discovery, or later-stage track, depending on TRL. However, early-stage applicants need a valid DPIIT certificate.

PRIP Scheme for MSMEs: MSMEs with a Udyam certificate qualify for the early-stage and discovery tracks. Furthermore, the PIB release names MSMEs as eligible for the later stage too.

PRIP Scheme for pharma companies: Established companies usually target the later stage, where the ₹100 crore ceiling applies. Round 1 confirms this trend. Large companies undertake 22 of the 41 approved projects. Examples include Biocon, Sun Pharma, Zydus and Wockhardt.

PRIP Scheme for MedTech: Nine approved projects in Round 1 are novel medical devices. For instance, they include a portable plasmonic-PCR device and a microfluidic platform for TB detection.

Round 1 Results: What They Reveal

Under the first call, the Government approved 41 projects for around ₹1,600 crore. In addition, these projects should bring ₹3,020 crore in private investment. Hence, total R&D spending reaches about ₹4,620 crore.

Of these projects, 12 are early stage and 29 are later stage. Meanwhile, 19 come from startups and MSMEs. Also, 27 fall under new medicines, five under complex generics and biosimilars, and nine under devices. Six projects use the strategic priority framework. Evaluation of the remaining applications continues.

How to Apply Under the Second Call with Finraja Consultancy

Check readiness. Confirm your entity type, DPIIT or Udyam proof, and TRL.
Pick your track. Choose early stage, later stage, or discovery.
File your application. Early-stage and discovery applicants first submit a concept note. Then, shortlisted applicants submit the detailed form. Later-stage applicants go straight to the detailed form. Ecosystem enablers can also file concept notes for projects in their networks.
Build a milestone plan. Use the milestone descriptor catalogue on the portal. Include costs and timelines.
Respond to in-principal approval. Accept within 10 days. Then, submit financial closure proof and the signed funding agreement within 60 days. Share allotment applicants also submit that agreement.
Report regularly. Upload quarterly progress and financial reports within 30 days of each quarter-end.

Importantly, round 1 applicant must not resubmit the same project.

PRIP Scheme Consultant in India: How Finraja Helps

PRIP applications are detailed and technical. Because of this, many teams hire a PRIP Scheme consultant in India. At Finraja Consultancy Pvt Ltd, we support you at every stage:

Eligibility and TRL readiness check
Track selection and funding structure
Concept note and detailed application drafting
Milestone plan and budget design
Co-funding and financial closure planning
Benefit-share option comparison
Post-approval reporting support

However, no consultant can promise approval. The Government scores projects on public health impact, novelty, funding plan, team strength and market potential. So, our role is to present your case clearly and correctly.

PRIP Scheme FAQs

What is the PRIP Scheme?
It is a ₹5,000 crore scheme by the Department of Pharmaceuticals. It funds R&D in new medicines, complex generics, biosimilars and novel medical devices.

Who is eligible for the PRIP Scheme?
Companies, LLPs and registered partnership firms can apply. Early-stage projects also need a DPIIT startup certificate or Udyam MSME registration.

How much funding does the PRIP Scheme offer?
Early-stage projects get up to ₹5 crore. Later-stage projects get up to ₹100 crore, capped at 35% of project cost. The discovery track offers up to ₹50 crore.

Do I need co-funding?
Yes, in most cases. Early-stage projects costing up to ₹1 crore need none. All other projects need co-funding as per the table above.

Ready to Apply?

The second call is open, and good preparation improves your chances. Book a free eligibility check with Finraja Consultancy Pvt Ltd today. Our team will review your TRL, track and funding plan before you apply.

Conclusion

The PRIP Scheme gives pharma and MedTech teams a rare chance to fund high-risk R&D. First, early-stage startups and MSMEs can receive up to ₹5 crore. Next, later-stage projects can reach ₹100 crore, capped at 35% of project cost. In addition, the new discovery track offers up to ₹50 crore for NCE and NBE projects.

However, funding comes with duties. For example, you must arrange co-funding, choose a benefit-share option and report every quarter. Therefore, check your PRIP Scheme eligibility and TRL before you apply.

At Finraja Consultancy Pvt Ltd, we guide you from the eligibility check to the final application. Contact us today to start your PRIP application with confidence.

Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.