Covid-19 equipment: Tamil Nadu offers special incentives for manufacturers

30% Capital subsidy capped at Rs 20 cr on investment made; Manufacturers to commence production before July 31

The Tamil Nadu Government today announced a special incentive package to industries, including MSMES, to manufacture Covid-19 equipment. The state seeks to encourage companies to manufacture invasive ventilators, N-95 masks, PPE, multi-parameter ICU monitors, and anti-viral drugs used to treat Covid-19; manufacturers are to commence production before July 31, 2020.

The state will give 30 per cent Capital subsidy, subject to a ceiling of Rs 20 crore on the investment made in eligible fixed assets will be provided to eligbile manufacturers.

The capital subsidy will be disbursed against investments made for making essential equipment, including modifications and upgrades of existing lines.

Six per cent interest subvention will also be provided to these manufactuers on working capital loans availed from commercial banks.

Spicot and SIDCO will provide necessary land and sheds on short- or long-term leases on priority, according to a governemnt Order.

As on date (April 2) some 234 Covid-19 positive cases have been confirmed in Tamil Nadu. These cases have been isolated or quarantined by the State.