Chennai, Apr 2 (PTI) The Tamil Nadu government on Thursday 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 scourge 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, the government said in an official release.

According to the package, 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, (309 positive cases as on Thursday) said the package will be applicable to existing equipment/drug makers or those who commence production before July 31, 2020.PTI VGN

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)