The plants will get incentives up to 150 per cent of eligible fixed capital investments depending on their location; move aimed at ramping up production amid the COVID pandemic
All permissions to set up the oxygen plants will be given in 15 days, the government has said
The state government will give financial incentives and a host of rebates to industries setting up new oxygen manufacturing plants, a senior official said on Friday. The move is aimed at resolving the acute shortage of medical oxygen for the treatment of coronavirus patients, Additional Chief Secretary (Industries) Dr Harshdeep Kamble said.
A package is being given under the “Maharashtra Mission Oxygen Swawlamban” plan to boost oxygen production in the state, said the top bureaucrat. “With a target of manufacturing 3,000 MT of oxygen per day, the state government has decided to give special financial incentives to industrial units manufacturing liquid medical oxygen and also for the manufacturing of oxygen cylinders and cryogenic tankers,” said Kamble.
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Units set up in Vidarbha, Marathwada, Dhule, Nandurbar, Ratnagiri and Sindhudurg regions shall be eligible for incentives up to 150 per cent of their eligible fixed capital investments and units set up in the rest of Maharashtra shall be eligible for up to 100 per cent general incentives, he said.
The government will also give a refund on gross SGST, stamp duty, electricity duty and unit subsidy of power cost for five years, interest subsidy for MSME units with a fixed capital investment of up to Rs 50 crore, also a special capital subsidy for units producing 25 MT to 50 MT of oxygen and going into production before December 31. All permissions shall be given in 15 days, he said.
“With up to 150 per cent incentives coupled with capital subsidy, which is more in backward regions of Marathwada and Vidarbha, and with Rs 2 per unit power tariff subsidy and other benefits, many units would be attracted to Maharashtra. Only those applying before June 30 will get the benefits of this policy,” he said.
Kamble said with the possibility of a third wave, the oxygen demand is expected to reach 2,300 MT. “As of now, our manufacturing capacity is 1,300 MT and the requirement is 1,800 MT,” he said.
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1,800mt
Current requirement of oxygen in Maharashtra
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