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Delhi govt approves policy for setting up private O2 plants with incentives

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By NS Desk 03-Aug-2021

New Delhi, Aug 3 (IANS) The Delhi government on Tuesday approved the Medical Oxygen Production Promotion Policy, 2021 along with the provision for incentives for the production of medical oxygen.

The Medical Oxygen Production Policy has been approved to make Delhi self-reliant in oxygen production.

"The Medical Oxygen Production Promotion Policy, 2021 provides several incentives to the private sector to set up oxygen production plants, storage facilities, and oxygen tankers," said Delhi Chief Minister Arvind Kejriwal.

The policy will help improve oxygen availability which became a huge bottleneck in handling the second Covid wave, he added.

In a tweet, Kejriwal said, "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."

The policy will help set up new oxygen plants or expanding the production capacity of the existing units for uninterrupted oxygen supply to the hospitals.

The policy also aims at easing the storage and transportation of medical oxygen in Delhi. It calls for time-bound solutions for setting up of liquid oxygen manufacturing facilities of minimum 50 MT capacity up to a total of 100 MT.

The national capital battled oxygen crisis while managing the second Covid wave. To avoid any such crisis, the Delhi government is creating LMO storage tanks of minimum 10 MT capacity up to a total capacity of 1000 MT and has floated a tender to procure 15 cryogenic tankers having a total carrying capacity of 225 tonnes.

The power subsidy shall be made available to the 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, said a statement released by Delhi government.

--IANS

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