Madhya Pradesh: Invest in oxygen plants and get up to Rs 75 crore aid

Madhya Pradesh: Invest in oxygen plants and get up to Rs 75 crore aid

The state, as of now, has no large unit which manufactures medical oxygen. Hence, this special financial assistance is being introduced to augment medical oxygen production in the state.

Staff ReporterUpdated: Tuesday, May 04, 2021, 01:46 AM IST
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COVID-19 in Mumbai Metropolitan Region: Govt starts building 14 new oxygen generation plants (Representative Photo) | Twitter/ Satej Patil

BHOPAL: The Madhya Pradesh government has offered a slew of sops to investors for setting up oxygen plants in the state. The sops include aid of up to Rs 75 crore and power supply at much lower rates. The scheme will remain effective from May 1, 2021, till March 31, 2022.

According to the details issued by department of industrial policy and investment promotion, the micro, small, medium and large greenfield industrial investments or existing oxygen-producing units in Madhya Pradesh, which are willing to go in for capacity expansion, or existing units willing to diversify in manufacturing for production of medical oxygen and cylindersóincluding cryogenic containers, oxygen concentrators and oxygen production-related equipmentówill be treated at par with new units for incentives.

To qualify under expansion or diversification, existing large units need to commit at least 30% or Rs 10 crore of the investment made in pre-existing plant and machinery or Rs 50 croreówhichever is less.

Existing medical colleges, hospitals and nursing homes can also avail of the benefits under the scheme provided they commission oxygen production units or medical oxygen cylinder manufacturing unit with minimum oxygen production capacity of 10 cubic metres per hour.

Eligible units can claim reimbursement of 50% of the expenditure incurredó a maximum of Rs 1 crore on safety equipment.

The scheme offers a rebate of Rs 1 per unit on the prevailing power tariff, in addition to any rebate provided by the MPERC.

The MPIDC or MSME department will reimburse the power tariff rebate to the investor.

The state, as of now, has no large unit which manufactures medical oxygen. Hence, this special financial assistance is being introduced to augment medical oxygen production in the state, said an official.

Necessary criterion

To qualify under expansion or diversification, existing large units need to commit at least 30% or Rs 10 crore of the investment made in pre-existing plant and machinery or Rs 50 crore, whichever is less

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