NE NEWS SERVICE
CHENNAI, APRIL 3
The Tamil Nadu Chief Minister has unveiled a special incentive package which includes capital subsidy, interest subvention and purchase guarantee for industries to incentivise production of medical equipment and drugs to tackle the shortage of coronavirus.
Manufacture of invasive ventilators, multi-parameter ICU monitors, N-95 respirators and Personal Protective Equipment and anti-viral and anti-malarial drugs (Hydroxychloroquine, Azithromycin and Vitamin C formulations in both tablet and liquid forms) will be eligibile for incentives, a release from DIPR said.
According to the the announcement, a 30 per cent capital subsidy with a cap of Rs 20 crore on investment will be staggered and it will be applicable for MSMEs as well.
The MSMEs will also get additional ongoing incentives as part of the thrust sector support.
Firms will also be eligible for a six per cent interest subvention on working capital loans availed from banks and financial institutions.
A minimum of 50 per cent of the manufactured equipment and drugs will be procured by the State-run Tamil Nadu Medical Services Corporation under a Purchase Guarantee agreement, the government said.
Firms will get a 100 per cent stamp duty exemption too, the government said.
Tamil Nadu, which is facing an increasing number of positive coronavirus cases, said the package will be applicable to existing equipment/drug makers or those who commence production before July 31, 2020, the release added.
