The State government has announced a special incentive to promote manufacture of COVID-19-related medical equipment and drugs.
This includes ventilators, PPE (personal protective equipment) kits, N-95 masks, multi-para monitors, anti-malarial and anti-viral drugs in Tamil Nadu. According to a Government Order, other items will be added.
The package will apply to all manufacturers, including large industries and MSMEs who commence production in Tamil Nadu before July 31. Minimum 50% of the equipment and drugs produced under the package during three months (May-July) will be purchased by Tamil Nadu Medical Services Corporation. “A 30% capital subsidy, subject to a ceiling of ₹20 crore, on the investment made in eligible fixed assets will be provided to eligible manufacturers. Capital subsidy will be disbursed as equal annual instalments over five years,” the government order said.
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Manufacturers can commence production without prior clearance. As per the order copy, “Permissions may be obtained subsequently after commencement of production.” There will be a 100% stamp duty waiver. A 6% interest subvention will be given to manufacturers for working capital loans availed from commercial banks or financial institutions for two quarters (till December 31), through Tamil Nadu Industrial Investment Corporation Ltd. (TIIC)
The package will be implemented by SIPCOT for large industries and IC&DIC for MSMEs. Guidance Tamil Nadu will provide facilitation, including single window clearance. SIPCOT and SIDCO will provide land or sheds on priority.