Tamil Nadu government on Tuesday invited expressions of interest (EOI) from companies to produce oxygen, vaccines and drugs to make the state self-sufficient in the fight against the Covid-19 pandemic.
In a statement, the government said that the state would take efforts to develop infrastructure to manufacture oxygen, vaccines and Covid-19-related drugs. The MK Stalin-led government called for joint ventures to manufacture oxygen, oxygen concentrators, vaccines and high-tech medical equipment.
“To reduce the oxygen shortage in the state and to bring a permanent solution, Tamil Nadu chief minister has ordered starting oxygen production units,” the statement said. “Orders have been issued to produce high-end medical equipment, oxygen, vaccines and medicines for Covid-19 within the state.”
Tamil Nadu Industrial Development Corporation (TIDCO), a state government agency, would extend support for the joint venture to private Indian and foreign companies who invest a minimum of 50-crore. Interested firms can respond to the expression of interest before May 31.
“This announcement is more significant in the present situation because the state government’s action plan here is to also encourage start-ups, though the EOI is open to everyone willing,” said Thangam Thennarasu, minister for industries, Tamil Nadu. “We want to be self-reliant, self-sufficient and self-contained so we will be in a position to rise to the occasion if the need arises in the future. The main incentive is the capital expenditure subsidy of 30%,” he added.
{{/usCountry}}“This announcement is more significant in the present situation because the state government’s action plan here is to also encourage start-ups, though the EOI is open to everyone willing,” said Thangam Thennarasu, minister for industries, Tamil Nadu. “We want to be self-reliant, self-sufficient and self-contained so we will be in a position to rise to the occasion if the need arises in the future. The main incentive is the capital expenditure subsidy of 30%,” he added.
{{/usCountry}}The government offered the incentive package a week ago, as per which investors who can establish manufacturing facility and commence commercial production of oxygen concentrators, oxygen cylinders and medical oxygen can avail capital subsidy of 30% provided they start production by August 15, 2021. Investors who can establish a large liquid oxygen plant with a minimum capacity of 10 MT daily can avail the same over five years if they can commence before November 30. A nodal agency of the state’s industries department would give single-window clearance free of cost.
The announcements come in the backdrop of a new government that was formed on May 2. As the government is trying to tackle the state’s rising Covid-19 cases, the demand for liquid medical oxygen has also shot up. The state is also facing a shortage of vaccines and has called for a global tender to procure 3.5 crore doses of vaccines. The integrated vaccine facility at Chengalpet district is also awaiting interested players after issuing a tender.