In order to meet the rising demand for oxygen caused by the pandemic, Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy unveiled his government’s new Andhra Pradesh Industrial Gases and Medical Oxygen Manufacturing Policy 2021. The policy will double the current manufacturing capacity to 700 tonnes.
The state government’s official statement declared that the main aim of the policy is to increase the existing oxygen manufacturing capacity from 360 metric tonnes (MT) to 700 MT. The policy will also seek to set up at least 50 Pressure Swing Adsorption (PSA) oxygen plants.
Additionally, the new policy will revive sick PSA units and also support all technologies like liquid oxygen, and helium-mixed oxygen (Heliox). It will also distribute manufacturing throughout the state by implementing zoning methodology.
Rapid capacity enhancement of existing plants and setting up of new plants to meet the policy’s targets will be achieved by offering up to 30% subsidy of Capex as well as a discount of Rs 2 per unit on power tariff. This will allow manufacturers to maintain a steady profit in these uncertain times.
The press release also stated that the new policy would be effective as of April 12, 2021 and be valid for a year. “The policy incentives first movers and the time period for commissioning PSA, Lox and Heliox are within 6 months, 18 months, and 24 months respectively from the date of sanction,” it read.
Several companies have already shown interest in the new policy, with names like Nova Air, Air Liquid, Praxair and Inox Air Products amongst them. Furthermore, the state government is also holding talks with suppliers worldwide to import zeolite molecular sieve, a crucial ingredient in oxygen PSA plants.
The Y S Jagan Mohan Reddy government has also introduced the Aarogyasri Card which will provide financial aid to the financially weak sections of the society.
According to the release, the state’s current oxygen generation capacity stood at 364 MT, with additional allocation from the Centre helping it meet the current demand.