Medical Oxygen Production Promotion Policy of Delhi – 2021 approved by Govt. of National Capital Territory of Delhi

Medical Oxygen Production Promotion Policy of Delhi – 2021 approved by Govt. of National Capital Territory of Delhi 

DEPARTMENT OF INDUSTRIES 

NOTIFICATION

Delhi, the 19th August, 2021

F. No. DCI/PC/2021/321/1225.—The Council of Ministers, Govt. of National Capital Territory of Delhi has approved the Medical Oxygen Production Promotion Policy of Delhi – 2021 vide Cabinet decision No. 3026 Dated 03.08.2021 (F-03/10/GAD/CN/2021/dsgadiii/2814-2823) and this Policy shall come into effect from the date of publication in the Delhi Gazette Notification. The Contents of the Policy are as under:

1. Background

The ongoing Covid-19 crisis fuelled by new 2021 strain of the virus has put enormous pressure on existing healthcare infrastructure, including medical logistics, in the NCT of Delhi. A large number of Covid-19 patients need continuous Oxygen support at hospitals and at homes. This sudden increased demand coupled with negligible Oxygen production in the State has necessitated dependence on resources outside Delhi. As the number of patients requiring Oxygen support increased in a very short span of time, the pressure on supply of medical Oxygen to hospitals was significantly strained leading to notable delay in movement of Oxygen from outside Delhi. Though the present situation is better, but a similar crisis may re-occur in future and it is needed to be better equipped to manage such a situation in future.

This policy has been introduced with an aim to make Delhi self-reliant in production of Medical Oxygen to meet with any such crisis/medical emergency in future.

2. Objectives& Targets

A. Objectives

i. To increase production of oxygen in Delhi through setting up of either new manufacturing enterprises or expanding the production capacity of existing units for uninterrupted oxygen supply to hospitals/nursing homes during the health crisis caused by Covid-19 or otherwise.

ii. To facilitate storage and transportation of Medical Oxygen in Delhi.

B. Policy Targets

The objective of the Medical Oxygen Production Promotion Policy of Delhi 2021 is to ensure time bound fulfilment of the following targets by incentivising early investment in the production/ storage infrastructure for medical oxygen:

a) Set up liquid oxygen (LOX) manufacturing facilities of minimum 50 MT capacity, up to a total of 100 MT.

b) Non-captive oxygen generation plants (PSA/Air Separation Unit technology) of minimum 10 MT and maximum 50 MT capacity up to a total of 100 MT.

c) Captive oxygen generation plants (PSA/Air Separation Unit technology) of minimum 500 LPM capacity at hospitals and nursing homes to cater to their peak demand for medical oxygen, up to a total capacity of 200 MT.

d) Cryogenic tankers of minimum carrying capacity of 10 MT for exclusive purpose of ferrying Liquid Medical Oxygen, up to a total capacity of 500 MT

e) LMO storage tanks of minimum 10 MT capacity, up to a total capacity of 1000 MT.

3. Project-wise conditions and benefits under the Scheme: –

I. Incentives  for  Liquid  Oxygen  (LOX)  manufacturing  plants/non-captive  oxygen  generation  plants (PSA/Air Separation Unit technology)

a) Eligibility:

i. Any new or existing unit wishing to make an investment in manufacturing LOX of minimum 50 MT plant capacity or in an oxygen generation plant (PSA/Air Separation Unit technology) of minimum 10 MT and maximum 50 MT plant capacity.

ii. Applicants shall have a minimum experience of three years either in the production or refilling of liquid/gaseous oxygen for medical or industrial use.

b) Capital subsidy on cost of plant and machinery up to Rs 20 lakhs per MT of installed capacity.

c) 100% reimbursement of stamp dutywithin a month of Commissioning of the plant.

d) 100% reimbursement of gross SGSTwithin a month of Commissioning of the plant.

e) Power subsidy of Rs 4 per unit consumed in the manufacturing process shall be made available for the first five years from the Date of commencement of Commercial Production (DCP).

f) The incentives shall be given until the target capacity of 100MT in total for LOX manufacturing plants and 100 MT in total for non-captive oxygen generation plants is reached.

g) Incentives will be granted only if the LOX manufacturing plants are commissioned by 31.12.2022 and Oxygen generation plants are commissioned by 31.03.2022.In case the plants are commissioned ahead of this deadline, an additional incentive of Rs 1 lakh/MT shall be given for every month that the plant has been commissioned ahead of the deadline.

h) Delhi government will have the right to first use of the product from these plants.

i) The beneficiary units shall operate only for which subsidy has been obtained.

j) Medical Oxygen shall be supplied by such plants to NCT of Delhi on first Priority and rates will be on no profit basisoras prescribed by Govt. of NCT of Delhi.

II. Incentives for captive oxygen generation plants (PSA/Air Separation Unit technology)

a) Eligibility: All hospitals and nursing homes in Delhi installing oxygen generation plants (min 500 lpm capacity) within their premises. In case of land/space constraint, these plants can be located in nearby vicinity as long as 80% of the plant usage is dedicated for captive use by a hospital/nursing home.

b) The plants should be preferably sized for peak demand for medical oxygen as per GOI formula (10 LPM for 50% of non-ICU beds, 24 LPM for ICU beds).

c) Capital subsidy on cost of plant and machinery up to Rs 20 lakhs per MT of installed capacity. Subsidy will be granted only if the plants are been commissioned on or before 31.12.2021.

d) The incentives shall be given until the target capacity of 200MT in total for captive oxygen generation plants is reached.

III. Incentives on Cryogenic Tankers for LMO

a) Eligibility: Any new or existing entity wishing to make an investment in purchasing new Cryogenic tankers of minimum carrying capacity of 10 MT for exclusive purpose of ferrying Liquid Medical Oxygen. The tankers shall be registered in Delhi.

b) Capital subsidy up to Rs 3 Lakhs per MT capacity shall be provided.

c) The registration of tanker cannot be transferred to a different state after claiming the subsidy. In such cases, the subsidy has to be returned with interest @ 24% per annum.

e) The incentives shall be given until the target capacity of500MT in total for Cryogenic tankers for LMO is reached.

f) Incentives will be granted only if the Cryogenic tankers are procured and registered in Delhi on or before 31.12.2021.

g) Delhi government will have the right to first use of these tankers.

IV. Incentives for LMO Storage Tanks

a) Eligibility: All hospitals, nursing homes, Refillers and Liquid Oxygen manufacturers in Delhi installing LMO storage tanks of minimum 10 MT capacity.

b) Capital subsidy on cost of LMO storage tank upto Rs 1 lakh per MT of installed capacity.

c) Subsidy will be granted only if the storage tanks are procured and commissioned on or before 31.12.2021.

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d) The incentives shall be given until the target capacity of1000MT in total for LMO Storage Tanks is reached.

The above incentives are tabulated as under: