At a time when the world is grappling with COVID-19 pandemic, uncertainty looming over markets, and investments expected to contract, the effectiveness of the market system of economy has been called into debate. The Government of Tamil Nadu in this scenario has leveraged its strong industrial base and infrastructure to incentivize industrial activity as a solution to the surging number of cases and to support the health ecosystem

The Tamil Nadu government has announced a specialized incentive package to promote manufacture of COVID-19 related medical equipment such as ventilators, PPE kits, N-95 masks, multi para monitors and anti-viral and anti-malarial drugs. The package is also open to other medical devices, equipment and drugs that may also be indirectly related to the treatment of COVID-19. 

The incentive supports MSMEs and large industries simultaneously and a range of incentives applicable without any floor on the capital investment:

1.    30% capital subsidy, up to INR 20 crore, with investment made for manufacturing of essential equipment, modification/ upgradation of existing lines, thereby, incentivising expansion and reinvestment plans of existing investors.
2.    MSMEs will be eligible for additional incentives under Thrust Sector  over and above.
3.    Investors can commence manufacturing without any approval mandated by the state laws. 
4.    Priority land allotment by the government 
5.    6% interest subvention for working capital for two quarters, capital effectively to cost 5.95%
6.    The state of Tamil Nadu, having achieved universal healthcare, emerges as an assured buyer of all medical equipment manufactured in the state – On those lines, the government will purchase 50% of all the equipment manufactured for 3 months.

The package will be applicable till July 31st, 2020. 

The commitment to business and enterprise during these trying times is a testimonial to the commitment and resilience to investments by the government and people of Tamil Nadu. 

Guidance Tamil Nadu  is the single window and point of contact for all large and foreign investments  in Tamil Nadu. 

Full text to the special package can be accessed here:

We are India's national investment facilitation agency.


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