The Delhi Government on Friday notified the Medical Oxygen Production Promotion Policy of Delhi – 2021 with an aim to make Delhi self-reliant in production of Medical Oxygen to deal with healthcare crises more efficiently. The policy will ensure time bound fulfilment of the requirement of medical oxygen by incentivising early investment in the production and storage infrastructure for medical oxygen. Health Minister Shri Satyendar Jain stated that the Kejriwal Government is preparing to combat any future waves of COVID-19 with full commitment and has a vision to make Delhi self-reliant in times of crisis. He said that the policy notified by the government provides several incentives to the private sector to help strengthen the oxygen production and storage infrastructure.
Health Minister Shri Satyendar Jain said, “The Kejriwal Government is committed towards strengthening its healthcare infrastructure and has a vision to make Delhi self-reliant in times of crisis. The Medical Oxygen Production Promotion Policy 2021 provides several incentives to the private sector to set up oxygen production plants and storage facilities. This will help us tackle the problem of oxygen shortage in the future and avert a crisis like we saw in the past. The Delhi Government is preparing to combat any future waves of COVID-19 on war-footing and is devoted towards ensuring that it is better equipped for any such crisis”
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 Targets
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.
