The government of Tamil Nadu has notified the drugs and pharmaceutical industry as thrust area for special capital subsidy eligibility for the state’s industrial development.

The existing manufacturing units which have taken up substantial expansion or diversification of existing activities will get the incentives. All new micro, small and medium enterprises located anywhere in the state are also eligible to avail the benefits.

The incentive plans were briefed to the manufacturers by the management consultant H Parameswar in the awareness programme organised by IDMA at the drugs control department last week.

Subsidy is granted for dedicated Effluent Treatment Plants (ETP)/Hazardous Treatment Storage and Disposal Facility set up by individual manufacturing units. This environment protection infrastructure subsidy comes around Rs.30 lakhs or 25 per cent of the capital cost.

All the new micro and small enterprises pharma units set up in backward blocks and industrial estates apart from estates located within the radius of 50 kms from Chennai city centre are eligible for reimbursement of stamp duty and registration charges. There is 50 per cent rebate on actual value of stamp duty and registration charges paid to the registration department.

Regarding special package to pharma industry, Parameswar said a special capital subsidy of 15 per cent on the eligible plant and machinery is available for 10 thrust sector industries set up anywhere in the State, subject to a maximum of Rs.30 lakhs.

When asked whether the incentives are granted for the industrial units manufacturing Indian system of medicines, he said the MSME policy indicates a negative list of enterprises/activities that are ineligible for incentives or subsidies. There is no specific mention of Ayurveda, Siddha or Unani in the negative list. This means that the ISM units can also avail the benefits.

To a query why the manufacturers are not coming forward to avail these benefits, the management consultant said there is a need to increase awareness on such incentives and the objective of the recent IDMA awareness program at the DC office was precisely to do that.

Drugs Control Director G Selvaraj, IDMA southern region vice president SV Veeramani, IPA secretary J Jayaseelan and PMA TN president S Sethuraman also spoke on the occasion.