To meet the increasing need for medical oxygen in the state due to COVID, Prime Minister YS Jagan Mohan Reddy presented the “AP Industrial Gases and Medical Oxygen Manufacturing Policy 2021-22” on Tuesday, which aims to increase the current production capacity of 360 tons increase to 700 tons. The aim is to set up at least 50 PSA oxygen generation systems.
The policy makes it easier for contractors to revitalize diseased oxygen generator plants, expand the capacity of existing plants and build new plants by offering up to a 30% grant on capital expenditures and a £ 2 per unit discount off the electricity tariff. According to a press release, the state’s oxygen generating capacity was currently 364 tons and the rest of the needs were met by the center’s allocation.
The state decided to rapidly increase the capacity of captive (inside hospitals) and non-captive facilities to achieve reliability and self-sufficiency.
The press release states that the government has already received indications from companies such as Nova Air (Sri City), Air Liquid (Kadapa), Praxair (Chittoor) and Inox Air Products (Vijayawada / Guntur), which aim to improve oxygen production capabilities in the EU plan state.
In addition, six PSA units (Sick Pressure Swing Adsorption) were identified and overhauled for production. The press release states that entrepreneurs have had a keen interest in building small / medium-sized oxygen systems (PSA) that could be installed in three to six months.
The state government has been in talks with suppliers around the world to import zeolite molecular sieve, an important crystalline porous material used in oxygen PSA plants.
Subsidies
It also supports the policy that aims to geographically divide production into three zones across the state and supports all technologies such as PSA, liquid oxygen (Lox) and helium mixed oxygen (Heliox).
For the sick PSA units, the policy guarantees a capital allowance of 20% up to 20 lakh per MT and a discount of £ 2 on the electricity tariff of up to 7 lakh per year for three years.
The new self-owned PSA units would offer a 30% equity grant of up to £ 30 and a £ 2 discount on electricity tariffs of up to £ 7 per year for two years.
Similarly, the new non-proprietary units using Lox and Heliox technology would receive a 20% capital grant (up to 20 lakh per MT) and 25% capital grant (up to 25 lakh per MT), respectively. An electricity tariff subsidy of £ 2 (up to £ 7) is granted for the first year for both Lox and Heliox systems. The price is £ 1.5 for the second year and £ 1 discount per unit for three to five years.
The guideline was drawn up by the Ministry of Industry in consultation with the Ministry of Health, Medicine and Family Welfare.