Chief Minister Shri Arvind Kejriwal led Delhi Cabinet approved the Medical Oxygen Production Promotion Policy 2021, along with the provision for incentives for the production of medical oxygen. This policy is part of the Delhi Government’s rigorous effort to make Delhi self-reliant in the production of Medical Oxygen to meet any medical emergency in the future. CM Arvind Kejriwal said that the Medical Oxygen Production Promotion Policy 2021 provides several incentives to the Pvt. sector to set up oxygen production plants, storage facilities, and oxygen tankers. He further said that this policy will help improve oxygen availability in Delhi, which became a huge bottleneck in handling the last COVID-10 wave.
The proposal for the Medical Oxygen Production Promotion Policy 2021 along with the provision for incentives has been approved by the Delhi Cabinet headed by Chief Minister Shri Arvind Kejriwal. This policy has been introduced with an aim to make Delhi self-reliant in the production of Medical Oxygen to meet any crisis or medical emergency in the future.
Delhi Chief Minister Arvind Kejriwal said via a tweet, “Medical Oxygen Production Promotion Policy 2021 has been approved. It provides several incentives to the private sector to set up oxygen production plants, invest in oxygen tankers, and set up oxygen storage facilities. This will help improve oxygen availability in Delhi, which became a huge bottleneck in handling the last COVID wave.”
Objectives of the Medical Oxygen Production Promotion Policy 2021
1- To make Delhi self-reliant in terms of Medical Oxygen production and supply. This will be done by increasing the production of oxygen in Delhi through setting up either new manufacturing enterprises or expanding the production capacity of existing units for uninterrupted oxygen supply to hospitals or nursing homes during the health crisis caused by COVID-19 or otherwise.
2- To facilitate storage and transportation of Medical Oxygen in Delhi.
Policy Target
The objective of the Medical Oxygen Production Promotion Policy of Delhi 2021 is to ensure time-bound fulfilment of the following targets:
1 – Setting up of Liquid Oxygen (LOX) manufacturing facilities of minimum 50 MT capacity up to a total of 100 MT.
2 – Setting up of non-captive oxygen generation plants (PSA/Air Separation Unit technology) of minimum 10 MT and maximum 50 MT capacity up to a total of 100 MT.
3 – Setting up of Captive oxygen generation plants (PSA/Air Separation Unit technology) of minimum 500 LPM capacity at hospitals and nursing homes to cater to their peak demand for medical oxygen up to a total capacity of 200 MT.
4 – Setting up of Cryogenic tankers of minimum carrying capacity of 10 MT for the exclusive purpose of ferrying Liquid Medical Oxygen up to a total capacity of 500 MT.
5 – Setting up of LMO storage tanks of minimum 10 MT capacity up to a total capacity of 1000 MT.
Power Subsidy
Power Subsidy shall be made available to Liquid Oxygen Generation Plants and non-captive Oxygen Generation Plants (PSA/ASU) at Rs 4 per unit consumed in the manufacturing process for the first five years from the date of commencement of commercial production.
SGST Reimbursement
Full reimbursement of gross SGST shall be made to Liquid Oxygen Generation Plants and non-captive Oxygen Generation Plants (PSA/ASU) within a month of Commissioning of the plant.
Policy Duration
Applications for a grant of subsidy/incentive shall be invited within a window of 15 days from the date of notification of this policy. In case the total capacity applied for, till the cut-off date i.e., 15 days from the date of notification of this policy, exceeds the target capacity, the selection shall be made through draw of lots from among all eligible applications, till the time the target capacity is achieved. In case the total capacity applied for is less than the target capacity, all applications shall be considered, and subsequently, a 15-day window for applications shall be opened up every month until the target capacity is achieved/exceeded up to a maximum of 6 months from the date of notification of this policy.
