Lifesaver boost, more jobs in Uttar Pradesh’s oxygen production policy

LUCKNOW: The state cabinet on Saturday gave its nod to UP Oxygen Production Promotion Policy, 2021, to augment production of medical and industrial oxygen and generate jobs. 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 senior official in the department said, 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 tons of the lifesaver gas, based on requirement of Covid-19 patients in home isolation or hospitals. Against this, the state has a liquid oxygen production capacity of 250.308 tons coupled with 88.84 tons from oxygen separators, pegging the total to 339.148 tons. Currently, the state is sourcing 894 tons from the Centre and other states, while industries have been asked to divert oxygen from industrial to medical use.
Going by the oxygen production policy, investors will be given capital subsidy in three equal annual instalments of 25% for Bundelkhand and Purvanchal, 20% for Mandhyanchal and 15% for Pashchimanchal. There will also be 100% stamp duty relief of for Bundelkhand and Purvanchal, 75% for Madhyanchal and 50% for Pashimanchal.
All applications will be assessed by a nodal agency after which the infrastructure and industrial development department will table it before a high-level committee comprising officials from departments of industrial development, MSME, stamp and registration, legal and power.
A letter of comfort will be issued after clearance by the high-level committee. The final clearance of up to Rs 100 crore will be given by the industrial development minister, while projects more than Rs 100 crore will go to the cabinet for nod.