Andhra Pradesh: New policy to raise medical oxygen output

Amaravati: Chief Minister YS Jagan Mohan Reddy on Tuesday unveiled new AP Industrial Gases and Medical Oxygen Manufacturing Policy 2021-22 with an aim to augment the oxygen manufacturing capacity from the existing 360 metric tonne (MT) to 700 MT in the state.

The policy targets to set up a total 50 PSA oxygen plants in both captive model (in hospitals) and in non-captive model.

As the demand for medical oxygen is increasing due to Covid second wave and reached 600 to 700 MT, the Chief Minister is keen on improving oxygen production.

At present, the state oxygen producing capacity stands at 364 MT and the rest of the demand is being met from supplies from Odisha, West Bengal and Karnataka.

The policy is prepared by the department of industries in consultation with department of health and family welfare.

Minister for industries M Goutham Reddy ensured that the state formulated best class policy. The government has already received intent from companies such as Nova Air (Sri City) Air Liquid (Kadapa), Praxair (Chittoor) and Inon Air Products (Vijayawada/Guntur). Further six sick PSA units have already been identified and refurbished for producing oxygen.

The salient features of the new policy include distribution of manufacturing across the state by zoning methodology, allowing for subsidising capex (30 per cent up to 30 lakh per MT) as well as Opex (power subsidy upto Rs 2 per unit ), to support all technologies and revive the sick PSA units.