Mission Oxygen: Maharashtra govt approves sops for industry

To encourage the private sector to generate liquid medical oxygen as part of its Mission Oxygen plan to increase daily production up to 3,000 metric tonnes (MT) in the state, the state cabinet on Wednesday gave in-principle approval to the sops to the industry

To encourage the private sector to generate liquid medical oxygen as part of its Mission Oxygen plan to increase daily production up to 3,000 metric tonnes (MT) in the state, the state cabinet on Wednesday gave in-principle approval to the sops to the industry. The state is expected to bear a burden of around ₹200 crore towards the incentives.

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Under its Mission Oxygen, also coined as Swayampurna Maharashtra, the state has set a short-term goal of 2300 MT to be achieved in the next six months. The mission, which is expected to cost the state ₹1,100 crore, will have the participation of private players with the aim of at least one new plant in each of the six divisions.

The state is extending sops in terms of waiver in the registration fee, electricity duty, stamp duty and GST. “The waiver in GST will be 150% in backward Marathwada and Vidarbha and 100% for the rest of the state. This will help us in encouraging the setting up of new LMO plants,” said public health minister Rajesh Tope. “We have six major players including Linde India, Inox Air Products, Praxair India, Taiyo Nippon Sanso India, JSW Steel and Air Liquid India Holdings who produce most of the current daily generation of 1295 MT. We are in talks with existing manufacturers and expect new entrants,” said an official from Mantralaya.

During the discussion cabinet members also suggested incentives for the cooperative sugar sector, which has started tapping the generation of oxygen. The state has planned more than 290 PSA (Pressure Swing Absorption (PSA) plants and dozens of Air Separation Units, along with the LMO plants with the help of private players.