Andhra Pradesh announces policy to set up oxygen plants

Aiming to double oxygen manufacturing capacity to 700 tonnes by refurbishing sick units for producing oxygen, Andhra Pradesh Chief Minister YS Jagan Mohan Reddy has unveiled the Andhra Pradesh Industrial Gases and Medical Oxygen Manufacturing Policy 2021-22.

Aiming to double oxygen manufacturing capacity to 700 tonnes by refurbishing sick units for producing oxygen, Andhra Pradesh Chief Minister YS Jagan Mohan Reddy has unveiled the Andhra Pradesh Industrial Gases and Medical Oxygen Manufacturing Policy 2021-22. "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 setup a total of at least 50 Pressure Swing Adsorption (PSA) oxygen plants", read an official release by the state government.

Features of the Policy include that this policy aims to distribute the 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). The policy aims to revive the sick PSA units to provide quick augmentation of the oxygen manufacturing capacity.

The policy will be effective from April 15, 2021, and will be valid for a period of 1 year. The policy incentives first movers and the time period for commissioning PSA, Lox and Heliox are within 6 months, 18 months, and 24 months respectively from the date of sanction. Meanwhile, Andhra Pradesh reported 21,320 new coronavirus cases and 98 fatalities in the last 24 hours, as per the state health department yesterday.

In a move to battle with the pandemic, Andhra Pradesh state government on May 17 added black fungus, also known as mucormycosis, to its Aarogyasri scheme. The state government has come up with the Aarogyasri Card to provide financial aid to the needy who are not able to the medical bills. (ANI)

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