In a bid to motivate oxygen production in the state, the Tamil Nadu government has announced an incentive package amidst the rising demand for medical oxygen fuelled by the second wave of the Covid-19 pandemic. The decision arrived at post a Chief Minister MK Stalin-chaired high-level meeting on 11 May.
As per the Tamil Nadu government’s incentive package, a capital subsidy of 30% in two equal installments will be given to units that make investments in manufacturing oxygen concentrators and cylinders, as well as medical oxygen in the southern state. The units will, however, should start manufacturing by 15 August this year to avail of the government’s incentive scheme. Also, the investments pumped into from 1 January to 31 August 2021 will also be considered for availing the concession. The production units that can manufacture at least 10 tonnes of liquid oxygen every day will receive 30%.
The units established between 1 January and 30 November 2021 will be able to avail the concession and will be provided with the capital subsidy in a year period. The plant should start production before 30 November 2021 to avail of the concession.