The policy blueprint, which was hammered out by the infrastructure and industrial development department, will bolster supply of medical oxygen amidst a surge in demand due to Covid's lethal second run.

A government spokesman said that the policy will enable private investment in liquid oxygen plants, medical oxygen plants, zeolite and cylinder manufacturing, oxygen concentrators and accessories, cryogenic tankers and container manufacturing units.

Applications under the policy will be accepted within six months of release.

Sources in the government said the government has an estimated daily requirement of 1,200 tonnes of oxygen based on requirement of Covid-19 patients in home isolation or hospitals.

The policy received the cabinet nod at a meeting held virtually on Saturday evening.