Centre to offer 20% capital subsidy for manufacturing MedTech components

The Centre is planning to offer a 20% capital subsidy to companies that are investing in the manufacturing of MedTech components.

“The incentives being planned is to give 20% capital subsidy on marginal investment to select companies that are investing in the manufacturing of components that are necessary to make digital X-ray, CT scan, MRI and other such devices,” Arunish Chawla, Secretary, Department of Pharmaceuticals, told media persons at recently concluded MedTech Stackathon.

The new incentive scheme is to encourage domestic manufacturers and reduce import dependency.

Earlier, Chawla said a new scheme to strengthen the domestic medical device industry will be rolled out in the next one month. The scheme is being formulated after detailed consultations with the medical device industry

“This (the scheme) will be launched in the next one month. It was part of the stakeholder consultation so that different parts of the scheme are firmed up and aligned with the needs of the industry. We have already received in-principle approval from the Finance Ministry for launching the new scheme,” he said

“The scheme is being brought to make the domestic industry self-reliant in the long run,” Chawla said.

He noted that the Production Linked Incentive (PLI) scheme for medical devices has worked well so far with 20 big greenfield projects.
MB Bureau