Andhra CM Jagan announces policy to set up oxygen plants

Amravati, May 19: In a bid to tackle the current oxygen crisis in the state, Andhra Pradesh CM YS Jagan Mohan Reddy has unveiled the news policy to double oxygen manufacturing capacity to 700 tonnes. The policy Andhra Pradesh Industrial Gases and Medical Oxygen Manufacturing Policy 2021-22 targets at least 50 oxygen plants in both the captive model (in hospitals) and non-captive model.

 

"The main aim of the policy is to augment the Oxygen Manufacturing capacity from the existing 360 metric tonnes (MT) capacity to 700 MT. The policy targets to set up a total of at least 50 Pressure Swing Adsorption (PSA) oxygen plants", read an official release by the state government. This policy also aims to distribute manufacturing across the state by zoning methodology.

 

 

The incentives in the policy allow for subsidizing Capex (30 percent or up to 30 lakh/MT) as well as Opex (power subsidy up to INR 2 per unit) of the unit allowing them to maintain profitability during these uncertain times.

The policy aims to support all the technologies such as PSA (pressure swing adsorption), Liquid Oxygen, and Helium Mixed Oxygen (Heliox).

 

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According to Industries Minister Mekapati Goutham Reddy, the State has already received interest from some companies such as Nova Air (Sri City), Air Liquid (Kadapa), Praxair (Chittoor), and Inox Air Products (Vijayawada/Guntur) which will augment the oxygen production capabilities.

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