Business Today
Loading...

Coronavirus crisis: Tamil Nadu offers 30% subsidy, incentives to drugs, medical equipment makers

Approved investors can manufacture these items and related activities without any prior approval mandated by the state laws and clearance from the Directorate of Town and Country Planning (DTPC), Tamil Nadu

twitter-logoPB Jayakumar | April 3, 2020 | Updated 21:46 IST
Coronavirus crisis: Tamil Nadu offers 30% subsidy, incentives to drugs, medical equipment makers
Representative Image

Tamil Nadu has offered a special incentive package for manufacturers of COVID-19 related drugs and medical equipment like ventilators, PPE kits, N-95 masks, multi-para monitors, anti-malarials and anti-viral drugs. Under the new scheme, the Approved investors can manufacture these items and related activities without any prior approval mandated by the state laws and clearance from the Directorate of Town and Country Planning (DTPC), Tamil Nadustate will offer 30 per cent capital subsidy, subject to a ceiling of Rs 20 crore, on the investments made in fixed assets, which will be disbursed as equal annual instalments over five years. The investment made for manufacturing of essential equipment includes modifications or upgradation of existing lines, says a government notification.

The offer applies to both large and MSMEs. The manufacturers have to commence production in Tamil Nadu before July 31, 2020.

In the case of MSMEs, the production will be considered under 'thrust sector', which will help them avail the existing incentives under such category. Approved investors can manufacture these items and related activities without any prior approval mandated by the state laws and clearance from the Directorate of Town and Country Planning (DTPC), Tamil Nadu.

The investors will get 100 per cent stamp duty waiver and land/sheds will be leased on a long-term basis by State Industries Promotion Corporation of Tamil Nadu and Small Industries Development Corporations, the industrial development clusters in the state.

The Tamil Nadu Industrial Investment Corporation (TIIC) will help to avail 6 per cent interest subvention for the working capital taken from banks and other financial institutions for two quarters. The Tamil Nadu Medical Services Corporation will purchase 50 per cent of the production for three months, says the state government.

Also Read: Coronavirus impact: Morgan Stanley expects deep global recession, cuts growth by 2.3% for H1FY20

Also Read: Coronavirus impact: Fitch cuts India's growth forecast to 5.1% for FY21

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close