Mumbai: Maha to shower incentives on Oxygen manufacturing plants in state

The Maharashtra Government has issued a notification on a slew of incentives to be provided to industrial units setting up oxygen manufacturing plants. The government will refund 110% gross state GST, waiver on stamp duty, electricity subsidy of Rs 2 per unit for the next 5 years, special capital subsidy for five years, 100-150% return on investment amongst other incentives. In addition, the government through its special industrial policy under Mission Oxygen Svavalamban (self-reliant) will provide a 5% subsidy on interest rate for micro, small and medium enterprises with an investment limit of Rs 50 crore.

Further, the government will provide a special capital subsidy for oxygen manufacturing units -for 25 mT-50 MT units starting production before December 31, 2021, and for units larger than 50 MT commencing production before June 30, 2022. It will also provide 10% to 20% capital subsidy on project cost from Rs 5 crore to Rs 15 crore. The government has fixed June 30, 2021, the last date of filing the application.

The government has assured speedy issuance of permissions and licenses through a single window system. As far as land in Maharashtra Industrial Development Corporation-run industrial estates are concerned, there will be 25-50% concession in land rate in addition to easy installment facility and allotment of land on priority.

The government has said these incentives will be provided for oxygen manufacturing projects, associated units including manufacturing cylinders, storage tanks and transport containers and also for expansion of currently operational units.

As reported by the Free Press Journal, the state cabinet on May 12, had cleared these incentives in a serious bid to attract more investors to implement the Mission Oxygen wherein the government has proposed to increase oxygen availability within the state to 3000 MT from the present level of 1200 MT per day. The government has proposed the development of 300 plants based on Pressure Swing Absorption (PSA) technology along with plants on other technologies. Already over 38 plants have become operational. The government has also floated global tender to seek transfer of PSA technology.