The state government modified the incentive scheme based on the request made by Inox Air Products and CVI Trade.

oxygen cylinders being set up by man wearing ppe kitImage for Representation
news Coronavirus Sunday, June 13, 2021 - 10:11

The Tamil Nadu government has extended the period of the special incentive package for establishing liquid medical oxygen plants in the state to December 31, 2022. Earlier, the state government had said companies that set up 10 ton-per-day liquid oxygen plants —  for the production of oxygen concentrators, oxygen cylinders and medical oxygen — by January 1, 2021, and start production by November 31, 2021, would be eligible for the special incentives.

The state government modified the incentive scheme based on the request made by Inox Air Products and CVI Trade. As per the revised scheme, companies setting up liquid medical oxygen plants with 10 ton per day at a minimum outlay of Rs 50 crore will be given a capital subsidy of 30% over five years in equal instalments. Previously, the State Industries Promotion Corporation of Tamil Nadu and the Small Industries Development Corporation also announced that land would be provided to such companies on a priority basis.

The companies have to set up the oxygen plant between January 1, 2021, and December 31, 2022 and start commercial production by December 31, 2022. The companies are also eligible for other incentives like land, stamp duty, electricity tax, and worker training subsidy. These apart, an intellectual property creation incentive up to 50% of the expenditure subject to a maximum of Rs 30 lakh is also provided.

Inox Air will be setting up a 200 tonnes per day (TPD) ultra-high pure cryogenic medical and industrial gases plant at Hosur at an outlay of Rs 150 crore. The company reportedly expects to commission the plant and commence production within December 2022. On the other hand, CVI Trade has expressed interest in arranging funds for oxygen plants and other COVID related support through its client MKM WIRA (M) SDN BHD of Malaysia. The company plans on arranging the funds in the form of ‘Private, Potential Equity Investment’ according to an Industries Department Government Order.

(With inputs from IANS)

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