Recently the Delhi government promoted the Medical Oxygen Production Promotion Policy 2021 and said that they will be offering 100% reimbursement of GST which would, in turn, increase oxygen production.
This promotion would help new enterprises to manufacture the oxygen or expand the current running oxygen suppliers to create a healthy stock of oxygen in the Delhi region.
All the oxygen is intended to supply to the hospitals, nursing homes and will also create a sufficient amount of storage and transportation of the medical oxygen.
This policy has come in the wake of covid 19 which has shown the truth of the crisis for a basic thing like oxygen and the panel has taken the decision to eliminate such shortage by this policy.
As per the notification it was said, “The ongoing Covid-19 crisis fuelled by a new 2021 strain of the virus has put enormous pressure on existing healthcare infrastructure, including medical logistics, in the NCT of Delhi. A large number of Covid-19 patients need continuous Oxygen support at hospitals and at homes. This sudden increased demand coupled with negligible Oxygen production in the State has necessitated dependence on resources outside Delhi.”
“As the number of patients requiring Oxygen support increased in a very short span of time, the pressure on the supply of medical Oxygen to hospitals was significantly strained leading to a notable delay in the movement of Oxygen from outside Delhi. Though the present situation is better, a similar crisis may reoccur in future and it is needed to be better equipped to manage such a situation in future.”
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The Medical Oxygen Production Promotion Policy of Delhi 2021 policy objective is to ensure the time fulfilled oxygen targets and production by giving incentive offers to the investment in the “storage and production of medical oxygen by the name of liquid oxygen (LOX) manufacturing facilities which can handle 50MT and up to 100MT.”
“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; 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; 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; and LMO storage tanks of minimum 10 MT capacity, up to a total capacity of 1000 MT.”
The notification also stated that “For those units which are willing to set-up Liquid Medical Oxygen manufacturing plant or Non-captive Oxygen Generation Plant (PSA/ASU) by purchasing land in Delhi, full stamp duty paid for the purchase of such land will be reimbursed within one month of Commissioning. This shall, however, be subject to the said land being used exclusively for operating the Oxygen Generation plant for a minimum period of 05 years.”
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The grant of subsidy application will be invoked within 15 days of this notification and if the application capacity exceeds the given the draw system will pronounce the eligibility. Also if the capacity does not fulfil the capacity the notification and window will be open every month for 6 months till this notification.
Also, the government cleared of any false declaration and information on the application so that would bring a return of subsidy at interest compounded annually at the rate of 18% per annum and if not paid on time, the recovery would be done with interest, as arrears of land revenue.
