What tax benefits are available for medical device companies in TamilNadu?
Tamil Nadu offers a comprehensive suite of incentives to medical device manufacturers to foster industrial growth and attract investments. These incentives encompass tax benefits,
capital subsidies, and support for infrastructure development. Below is an overview of the key incentives available:
1. State-Level Incentives
- Electricity Tax Exemption: Eligible enterprises receive a 100% exemption from electricity tax for the first 10 years of operation.
- Stamp Duty Reimbursement: Stamp duty is reimbursed 50% for the lease or purchase of land, reducing initial setup costs.
- Capital Subsidies:
- General Capital Subsidy: Micro, Small, and Medium Enterprises (MSMEs) are eligible for a 25% 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 undertaking expansion or diversification.
- A 25% subsidy, up to ₹10 lakh, is provided for adopting cleaner and environmentally friendly technologies.
- Special Packages for Large Investments: Projects exceeding ₹300 crore may qualify for tailored incentive packages, including additional subsidies and support measures.
2. Central Government Incentives
- Production Linked Incentive (PLI) Scheme: This scheme offers 5% financial incentives on incremental sales of medical devices manufactured in India, focusing on segments like cancer care, radiology, imaging, anesthetics, and implants.
- Promotion of Medical Device Parks: The central government supports the development of medical device parks to provide common infrastructure facilities, aiming to reduce manufacturing costs and enhance competitiveness. Tamil Nadu’s medical device park in Oragadam benefits from this initiative.
3. Additional Support Measures
- The Tamil Nadu Industrial Investment Corporation (TIIC) offers a 6% interest subvention for working capital loans obtained from banks and financial institutions, applicable for two quarters.
- Procurement Support: The Tamil Nadu Medical Services Corporation commits to purchasing 50% of the production from eligible manufacturers for an initial three-month period, providing market assurance.
- These incentives reflect Tamil Nadu’s commitment to fostering a robust medical device manufacturing ecosystem, encouraging domestic and international players to invest and thrive in the state.
