Andhra Pradesh unveils new medical oxygen policy

Aim is to increase capacity from 360 MTs to 700 MTs by setting up 50 PSA plants

To meet the rising demand for medical oxygen due to COVID in the State, Chief Minister Y.S. Jagan Mohan Reddy on Tuesday unveiled the “AP Industrial Gases and Medical Oxygen Manufacturing Policy 2021-22”, aimed at increasing the current manufacturing capacity of 360 metric tonnes to 700 metric tonnes. The target is to set up at least 50 PSA oxygen generation plants. The policy facilitates the revival of sick oxygen generator plants, capacity enhancement of existing plants and establishment of new plants by entrepreneurs by offering up to 30% subsidy on capital expenditure and ₹2 per unit discount on power tariff. According to a press release, the State’s oxygen generation capacity was 364 MTs currently and the rest of the demand was being met from the allocation by the Centre. The State decided to rapidly augment the capacity of captive (within hospitals) and non-captive plants so that reliability and self-sufficiency were achieved.