A month after it sanctioned a special package of incentives to promote investment in oxygen augmenting facilities, the Tamil Nadu government has relaxed norms to include more beneficiaries to be able to receive such incentives.
Earlier, one of the eligibilities to receive the incentives was that the liquid oxygen plant must commence commercial operations by the end of this year. Now, the State government has extended it till December 31, 2022.
A G.O. to this effect has been issued by Industries Secretary N. Muruganandam on June 8. The government’s decision followed representations from M/s. INOX Air Products Private Limited and M/s. CVI Trade Private Limited.
The government also said that the eligible companies would receive incentives in land cost, stamp duty, electricity tax, training subsidy, intellectual property creation and quality certification as envisaged in the Tamil Nadu Industrial Policy 2021.
Liquid oxygen plants must be with a minimum capacity of 10 MT a day with a minimum investment of ₹50 crore during the investment period between January 1 and December 2021.
INOX, one of the largest suppliers of medical oxygen in Tamil Nadu with units in Manali, Salem and Tirunelveli, has proposed to make an additional investment of ₹150 crore to set up a new 200 TPD, state-of-the-art ultra-high pure cryogenic medical and industrial gases plant in Hosur. It expects to commission the plant and commence production within December 2022.
CVI has also confirmed their expression of interest to arrange to fund for projects relating to oxygen plants and other COVID-19-related support in the form of ‘private potential equity investment’ through a Malaysian company.