Delhi Government notifies Medical Oxygen Production Promotion Policy and allows 100% reimbursement of SGST on LOX manufacturing facilities

The Government of NCT of Delhi vide Notification No. F. No. DCI/PC/2021/321/1225 dated August 19, 2021 has notified Medical Oxygen Production Promotion Policy of Delhi-2021. This policy has been given effect to with an objective to increase production of medical oxygen in Delhi for uninterrupted oxygen supply to hospitals/nursing homes during the health crisis caused by Covid-19 or otherwise.

The objective of the Medical Oxygen Production Promotion Policy of Delhi 2021 is to ensure time bound fulfilment of the following targets by incentivising early  investment in the production/storage infrastructure for medical oxygen:

  1. Set up liquid oxygen (LOX) manufacturing facilities of minimum 50 MT capacity, up to a total of 100 MT.
  2. Non-captive oxygen generation plants  (PSA/Air  Separation  Unit technology) of minimum 10 MT and maximum 50 MT capacity up to a total of 100 MT.
  3. Captive oxygen generation plants  (PSA/Air  Separation  Unit technology) of minimum 500 LPM capacity at hospitals and nursing homes to cater to their peak demand for medical oxygen, up to a total capacity of 200 MT.
  4. Cryogenic tankers of minimum carrying capacity of 10 MT for exclusive purpose of ferrying Liquid Medical Oxygen, up to a total capacity of 500 MT.
  5. LMO storage tanks of minimum 10 MT capacity, up to a total capacity of 1000 MT.

Various incentives in form of subsidy and reimbursement are provided with, along with certain conditions. In case of ‘Set up liquid oxygen (LOX) manufacturing facilities of minimum 50 MT capacity, up to a total of 100 MT’ mentioned in (a) above, 100% reimbursement of gross SGST paid shall be made within a month of Commissioning of the plant.

The Notification can be accessed at: http://www.a2ztaxcorp.com/wp-content/uploads/2021/08/Notification-No.-F.-No.-DCIPC20213211225-dated-August-19-2021.pdf

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