Special sops for oxygen producers ahead of Covid third wave

BENGALURU: After facing a severe shortage of oxygen during the second wave of the Covid-19 pandemic, the Karnataka  Government is looking to course-correct ahead of the possible third wave. The BS Yediyurappa Cabinet on Thursday approved a slew of incentives to encourage more oxygen manufacturing units to be set up in the state to counter a possible shortage of the life-saving commodity. The move is also a step towards the state’s preparedness for the possible third wave of Covid.

“We faced oxygen shortage during the second wave of Covid-19. To eliminate any shortage and to encourage more oxygen production and storage, the Cabinet has approved an incentive scheme for oxygen manufacturing associated enterprises in Karnataka. We currently have nine manufacturing units and six suppliers. Production capacity is 815 metric tons and storage capacity is 5,780 metric tons. These incentives will be given to entrepreneurs who will come forward to increase both,” Law and Parliamentary Affairs Minister Basavaraj Bommai told the media after the Cabinet meeting.

Cabinet has approved incentives in the form of

 Capital subsidy of 25% on the value of fixed assets subject to a minimum investment of Rs 10cr  
 100% exemption from electricity duty for 3 years after commencement of production 
 Additional power tariff subsidy of Rs 1,000 per metric tonne of oxygen supplied to the government 
 100% stamp duty exemption and reimbursement of loan and land documents 
 Concessional registration charge at Rs 1 per Rs 1,000 for loan documents, sale deed and lease deed 
 100% reimbursement of land conversion fee

Other decisions

 Rs 30 crore for the Phase-2 work of Gadag Veterinary College
 Rs 48 crore for a mobile app for crop survey for 2022 Kharif crops
 Job-oriented courses (diploma in vocational education) to be equivalent to PUC
 Rs 58 crore for Devadurg Taluk Engineering College building 
 One-time settlement scheme under KSFC loans amended to extend deadline
 Karnataka Prisons Development Board Bill to be placed before Assembly
 139 prisoners to be released under Article 161 for good behaviour