The Delhi Government notified the Medical Oxygen Production Promotion Policy 2021 and allowed 100% Reimbursement of GST in order 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 or nursing homes during the health crisis caused by Covid-19 or otherwise and to facilitate storage and transportation of Medical Oxygen in Delhi.
The policy has been introduced with an aim to make Delhi self-reliant in the production of Medical Oxygen to meet with any such crisis/medical emergency in the future.
“The ongoing Covid-19 crisis fuelled by a 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 the supply of medical Oxygen to hospitals was significantly strained leading to a notable delay in the movement of Oxygen from outside Delhi. Though the present situation is better, a similar crisis may reoccur in future and it is needed to be better equipped to manage such a situation in future,” the notification read.
The objective of the Medical Oxygen Production Promotion Policy of Delhi 2021 is to ensure time-bound fulfillment of the targets by incentivizing early investment in the production/ storage infrastructure for medical oxygen namely set up liquid oxygen (LOX) manufacturing facilities of minimum 50 MT capacity, up to a total of 100 MT; 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; 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; Cryogenic tankers of minimum carrying capacity of 10 MT for the exclusive purpose of ferrying Liquid Medical Oxygen, up to a total capacity of 500 MT; and LMO storage tanks of minimum 10 MT capacity, up to a total capacity of 1000 MT.
“For those units which are willing to set-up Liquid Medical Oxygen manufacturing plant or Non-captive Oxygen Generation Plant (PSA/ASU) by purchasing land in Delhi, full stamp duty paid for the purchase of such land will be reimbursed within one month of Commissioning. This shall, however, be subject to the said land being used exclusively for operating the Oxygen Generation plant for a minimum period of 05 years,” the Delhi government notified.
Applications for a grant of subsidy/incentive shall be invited within a window of 15 days from the date of notification of this policy. In case the total capacity applied for, till the cut-off date i.e.15 days from the date of notification of this policy, exceeds the target capacity, the selection shall be made through draw of lots from among all eligible applications, till the time the target capacity is achieved/exceeded. In case the total capacity applied for is less than the target capacity, all applications shall be considered, and subsequently, a 15 days window for applications shall be opened up every month until the target capacity is achieved/exceeded up to a maximum of 6 months from the date of notification of this policy.
Applications for a grant of subsidy/incentive shall be invited within a window of 15 days from the date of notification of this policy. In case the total capacity applied for, till the cut-off date i.e. 15 days from the date of notification of this policy, exceeds the target capacity, the selection shall be made through draw of lots from among all eligible applications, till the time the target capacity is achieved/exceeded. In case the total capacity applied for is less than the target capacity, all applications shall be considered, and subsequently, a 15 days window for applications shall be opened up every month until the target capacity is achieved/exceeded up to a maximum of 6 months from the date of notification of this policy.
The Delhi Government has clarified that if any false declaration is given for the purpose of availing incentives or if incentives are availed for a unit that was not eligible or upon violation of any of the conditions of this policy, the amount of incentives is liable to be recovered from the date of availing such benefit, along with the interest compounded annually at the rate of 18% per annum. In case of non-payment within the stipulated time, the Government may recover such amounts, including interest, as arrears of land revenue.
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