The Delhi government on Friday notified the Medical Oxygen Production Promotion Policy 2021 with an aim to increase the production of oxygen in the national capital through either new manufacturing enterprises or by expanding the production capacity of the existing units.
Under this policy, the Delhi government has set a target to establish liquid oxygen manufacturing facilities of a minimum of 50 MT capacity.
The government has also planned to set up non-captive oxygen generation plants (PSA/air separation unit technology) of a minimum of 10 MT and a maximum 100 MT capacity, a notification issued by the Delhi government said.
Apart from these, the policy also includes captive oxygen generation plants of a maximum 500 LPM capacity at hospitals and nursing homes to cater to their peak demand for medical oxygen.
The policy provides several incentives to the private sector to set up oxygen production units, storage facilities, and oxygen tankers.
For installing liquid medical oxygen (LMO) storage tanks in the hospitals, the Delhi government will provide Rs one lakh per MT. The subsidy will be granted only if the storage tanks are procured and commissioned by December 31 this year.
“100 percent capital subsidy under this policy shall be provided to the approved units within one month of commissioning. In case a unit wishes to avail 50 percent upfront payment as advance at the stage of proposal sanctioning, the same shall be provided against a bank guarantee for an equivalent amount, extending up to the date of commissioning. The 50 percent subsidy for liquid oxygen manufacturing plants and non-captive oxygen generation plants shall be provided only after proof of land is submitted,” the notification read.
Along with capital subsidy, the Delhi government will also provide power subsidy to the liquid oxygen generation plants and non-captive oxygen generation plants at Rs 4 per unit consumed in the manufacturing process for the first five years from the date of commencement of commercial production, said a statement released by the Delhi government.
The policy was approved by the Delhi cabinet on August 3.