Key Policy Objectives
- To substantially increase production of Oxygen in Uttar Pradesh and thereby make oxygen available to contain the health crisis caused by Covid19
- To facilitate and promote investments in Oxygen manufacturing in UP while creating employment opportunities
- To establish Uttar Pradesh as a self-dependant State in production of Oxygen
As the country is heavily struck by the second wave of COVID19, particularly fuelled by the new 2021 strain of the virus, there is severe medical crisis related to health infrastructure that has emerged during this pandemic. Shortage of medical oxygen has become most eminent threat in treatment of patients and Uttar Pradesh is also grappled with this shortage of medical oxygen.
Therefore, the State Government has introduced an ‘Oxygen Production Promotion Policy 2021’ with an aim to leverage the opportunities of oxygen manufacturing and to make Uttar Pradesh “Atma-Nirbhar” in the production of oxygen – both for medical and industrial purposes.
Key Policy Highlights
The various features of this policy can be summarised as below –
- The policy will include all kinds of investments of Rs 50 Crores and above in new, expansion, diversification for all kinds of Oxygen manufacturing. It also covers manufacturing of zeolite, oxygen cylinder, oxygen concentrator and all kind of allied devices, cryogenic tankers, iso-tankers, storage facilities and transport facilities manufacturer.
- Investors are eligible for capital subsidy at the rate 25% in Bundelkhand & Poorvanchal region, at the rate of 20% in Madhyanchal region and at the rate of 15% in Paschimanchal region.
- Also, it provides stamp duty exemption at the rate of 100% in Bundelkhand & Poorvanchal region, at the rate of 75% in Madhyanchal region and at the rate of 50% in Paschimanchal region.
The policy has been notified on the May 16, 2021 and will be valid for a period of 6 months. Invest UP has been nominated as nodal agency for processing the applications under this policy.