What incentives does the Tamil Nadu government offer to medical device manufacturers?
The Tamil Nadu government offers a comprehensive array of incentives to bolster the medical device manufacturing sector, aiming to attract investments, foster innovation, and enhance competitiveness. Key incentives include:
1. Capital Subsidies:
- General Capital Subsidy: Micro, Small, and Medium Enterprises (MSMEs) in the medical device sector are eligible for a 25% capital subsidy on eligible plant and machinery, up to ₹150 lakh.
- Additional Subsidies:
- An extra 5% subsidy, capped at ₹25 lakh, is available for existing Micro and Small Manufacturing Enterprises expanding or diversifying their operations.
- A 25% subsidy, up to ₹10 lakh, is provided for adopting cleaner and environmentally friendly technologies.
2. Production Linked Incentive (PLI) Scheme:
Aligned with the central government’s initiatives, Tamil Nadu facilitates the PLI Scheme for promoting domestic manufacturing of medical devices. This scheme offers financial incentives of 5% on incremental sales of medical devices manufactured in India, focusing on segments like cancer care, radiology, imaging, anesthetics, and implants.
3. Medical Devices Parks:
Tamil Nadu is developing a dedicated Medical Devices Park to provide state-of-the-art infrastructure and common facilities, aiming to reduce manufacturing costs and enhance competitiveness. This initiative is part of a broader scheme with a financial outlay of ₹400 crore to support such parks across various states.
4. Sector-Specific Incentives:
Under the Tamil Nadu Life Sciences Promotion Policy, the government offers tailored incentives for the medical devices sector, including:
- Infrastructure Support: Development of specialized industrial parks and clusters for life sciences industries.
- Ease of Doing Business: Simplified regulatory processes and single-window clearances to expedite project approvals.
- Skill Development: Initiatives to train a skilled workforce tailored to the needs of the medical devices industry.
5. Additional Support for MSMEs:
The state provides various incentives to MSMEs, such as:
- Interest Subsidies: Subsidized interest rates on loans for technology upgradation and infrastructure development.
- Tax Concessions: Exemptions or reductions in state taxes and duties for specified periods.
- Marketing Assistance: Support for participating in domestic and international trade fairs to enhance market access.
These incentives reflect Tamil Nadu’s commitment to fostering a robust medical device manufacturing ecosystem, encouraging both domestic and international players to invest and thrive in the state.
