TN Government Order: Special Incentive Package to promote manufacture of COVID-19 related medical equipment and drugs!
Posted on: 03/Apr/2020 9:18:57 AM
1. The State Government of Tamil Nadu has been taking several initiatives in preventing the spreading of the raging Coronavirus pandemic!
As a part of this, it is very essential to augment the local manufacturing capacity of essential medical equipment and drugs and also to implement a special inventive package to promote thei manfaturing!
This package will be a combination of financial incentivs and ease of starting-business-related-facilitations.
2. As such, the following incentive package is sanctioned to promote the manufacturing of COVID-19 related medical equipment and drugs such as ventilators, PPF Kits, N-95 Masks, Multi-para monitors and anti-maarial and anti-viral drugs in Tamil Nadu:
- Package will apply to the manufacture of ventilators, PPE Kits, N-95 Masks, Multi para monitors and anti-malarial and anti-viral drugs used in the management of COVID-9/The equipment and drugs must conform to the applicable standards. If required, more items can be added later.
- Production has to commence before 31st July in Tamil Nadu.
- Will apply to large industries and MSMEs.
- 30% capital subsidy, upper limit – Rs. 20 Crores on the investment made in eligible fixed assets will be provided to the eligible manufacturers. Capital subsidy will disbursed as equal annual instalments over 5 years. For MSMEs, it will be included under the category of ‘Thrust Sector’ for availing maximum incentives.
- Manufacture can start without prior approval mandated by state laws. Permissions may be obtained subsequently.
- SIPCOT and SIDCO will provide the necessary land.sheds on priority basis (long-term and short-term).
- 100% Stamp duty waiver will be provided.
- 6% interest subvention will be provided to these manufacturers for working capital loans availed from commercial banks or Financial Institutions for 2 quarters (till 31st December 2020) through TIDC.
- Minimum 50% of the equipment and drugs produced under the pacjkage during 3 months (May-July 2020).will be purchased by Tammil Nadu Medical Services Corporation at negotiated prices.
- Priority will be given under NEEDS Scheme for MSMEs who come forward to manufacture above.
- This package will be implemented by SIPCOT for large industries and IC&DIC for MSMEs. Guidance Tamil Nadu for large industries and MSME Trade and Investment Promotion Bureay for MSMEs will provide the necessary Guidance and Facilitation including Single Window Clearance.
3. The Principal Secretary to the Government, Industries Department, is authorized to add additional items within the scope of the incentive package in consultation with the Finance Department.
