AP launches new policy with aim of ramping up oxygen production

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Amaravati, May 18 (PTI): Andhra Pradesh government on Tuesday unveiled the AP Industrial Gases and Medical Oxygen Manufacturing Policy 2021-22 with the main aim of augmenting oxygen production capacity in the state from the present 360 tonnes to 700 tonnes in tune with the growing demand.

Chief Minister Y S Jagan Mohan Reddy unveiled the policy here on Tuesday night, an official release said.

The policy targets establishment of at least 50 Pressure Swing Adsorption technology oxygen plants in both captive (in hospitals) and non-captive modes.

Drafted by the Department of Industries, in concert with the Department of Medical and Health, the new policy will be in place for a period of one year, the release said.

'The demand for medical oxygen in the state has grown exponentially due to the COVID second wave and is currently at 600-700 MT.The state's production capacity is currently at 364 MT and the rest of the demand is being met through supplies from Odisha, West Bengal and Karnataka,' the release added.

It said the government has received intent from some companies for production of oxygen at different locations in the state to augment the capacities.

Also, six sick PSA units have already been identified and refurbished for producing oxygen.

The government will provide an incentive of up to Rs 30 lakh (capital expenditure) and power subsidy of up to Rs 2 per unit (operational expenditure) to 'allow the units to maintain profitability during these uncertain times', the release added.

The new policy aims to support all technologies like PSA, liquid oxygen and helium-mixed oxygen (Heliox).

The 13 districts in the state have been classified into three zones for effective implementation of the policy.

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