Andhra Pradesh launches new policy to double its oxygen manufacturing capacity

Andhra Pradesh Chief Minister YS Jagan Mohan Reddy has unveiled a new Andhra Pradesh Industrial Gases and Medical Oxygen Manufacturing Policy 2021-22 to double the state's oxygen manufacturing capacity. 

The main aim of the policy is to increase Andhra Pradesh's oxygen manufacturing capacity from the existing 360 metric tonnes (MT) capacity to 700 MT  by refurbishing sick units for producing oxygen. 

Key Features

•The Andhra Pradesh Industrial Gases and Medical Oxygen Manufacturing Policy aims to set up a total of at least 50 Pressure Swing Adsorption (PSA) oxygen plants.

•The important features of the policy include that it aims to distribute the manufacturing across the state by zoning methodology.

•The policy incentives allow subsidizing Capex (30 percent or up to 30 lakh/MT) and Opex (power subsidy up to INR 2 per unit) of the unit allowing them to maintain profitability during these uncertain times.

•The policy aims to support all the technologies including PSA (pressure swing adsorption), Liquid Oxygen, and Helium Mixed Oxygen (Heliox).

•It aims to revive the sick PSA units to provide a quick boost to the state's oxygen manufacturing capacity.

Term of the Policy

The Andhra Pradesh Industrial Gases and Medical Oxygen Manufacturing Policy will be effective for 1 year from April 15, 2021

The period for commissioning PSA, Lox and Heliox includes within 6 months, 18 months and 24 months respectively from the date of sanction.

Background

Andhra Pradesh has reported a total of 21,320 new coronavirus infections and 98 fatalities in the last 24 hours.

The state government has added black fungus or mucormycosis to its Aarogyasri scheme to fight against the pandemic. 
The state has introduced an Aarogyasri Card to provide financial aid to the needy who are not able to foot their medical bills.