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Kerala announces special packages for vaccine plants

Our Bureau Thiruvananthapuram | Updated on September 09, 2021

Land on lease for 60 years, 50% subsidy on lease premium

The Kerala government will offer special packages for setting up vaccine-manufacturing units in the State and will allow land on lease for 60 years with a 50 per cent subsidy on lease premium.

The decision was taken at a meeting of the State Cabinet late on Wednesday. Accordingly, the government will offer attractive incentives, including long-term loans, subsidised power and water supply, single window clearance and fast track approval within 30 days for these industrial units.

Separate EoI documents

Two different expression of interest (EoI) documents would be readied, and subject to the scrutiny of the technical committee. Companies with necessary qualifications would be considered as anchor industries and invited to set up manufacturing units inside the park.

Vijaykumar Sisla of HLL Biotech, also a member of the vaccine production unit working group, will be consultant for setting up the vaccine-manufacturing unit, while the experts’ team chaired by B Ekbal would be tasked with the development of a vaccine policy for the State.

Discussions with Russian team

The government has already held preliminary discussions with the Russian Consul General and the Sputnik vaccine FDI team for setting up a plant for manufacturing thevaccine. It has also earmarked 10 acres for the plant at the up-and-coming Life Sciences Park at Thonnakkal.

Kerala State Industrial Development Corporation (KSIDC) has been looking at potential knowledge partners for setting up a ‘fill and finish’ facility for the vaccine and a full-fledged vaccine manufacturing plant. Stamp duty and registration duty would be avoided for the lease agreement executed with the KSIDC, according to the decision arrived at during the Cabinet meeting.

Attractive long-term loans

A subsidy of up to 30 per cent in the cost of equipment, plant and machines would be offered as capital aid, within ₹1 crore for fill-finish unit and within ₹5 crore for the plant.

Attractive long-term loans with a repayment period of 20 years will be offered through the State government’s financial institutions. Eligible loan amount would be capped at ₹20 crore for the fill-finish unit and within ₹30 crore for vaccine-manufacturing units. The total loan amount eligibility would be limited to ₹100 crore.

Subsidy on power, water bills

The government will offer subsidy to the plant on the total power bill at ₹2 per unit. Subsidy will be granted on water bills in the first two years of operation. Choice of vaccine to be manufactured, technology for use and basic infrastructure required would be left to the companies.

If the 85,000 sq ft building being completed at the Life Sciences Park meets with the approval of vaccine-manufacturing firms, it would be given on annual lease. The KSIDC will also construct a common waste water treatment plant, solar plant and bio-waste treatment plant.

Published on September 09, 2021

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