Maharashtra Govt to give financial incentives for new oxygen-making units

Maharashtra Government has approved a special financial incentives package for industries setting up new oxygen manufacturing plants.

The state government decided to approve a package in the backdrop of an acute shortage of medical oxygen for the treatment of coronavirus patients.

The package is being given under the "Maharashtra Mission Oxygen Swawlamban" plan to boost oxygen production in the state.

Due to the increasing number of coronavirus cases, there is a huge shortage of oxygen in Maharashtra.

With a target of manufacturing 3000 MT of oxygen per day, the state government has decided to give special financial incentives to industrial units manufacturing liquid medical oxygen and manufacturing of oxygen cylinders and cryogenic tankers.

Units set up in Vidarbha, Marathwada, Dhule, Nandurbar, Ratnagiri, and Sindhudurg regions shall be eligible for incentives up to 150 percent of their eligible fixed capital investments, and units set up in the rest of Maharashtra shall be eligible for up to 100 percent general incentives, he said.

The government will also give a refund on gross SGST, stamp duty, electricity duty, and unit subsidy of power cost for five years, interest subsidy for MSME units with a fixed capital investment of up to Rs 50 crore, also a special capital subsidy for units producing 25 MT to 50 MT of oxygen and going into production before December 31.

Under the Ease of Doing Business policy for units to go into production at the earliest, all permissions shall be given in 15 days. For fast-tracking the implementation of the policy, a committee to monitor the same will be set up.

With up to 150 percent incentives coupled with capital subsidy, which is more in less developed regions of Marathwada and Vidarbha, with Rs 2 per unit power tariff subsidy and other benefits, many units would be attracted to Maharashtra. Only those applying before June 30 will get the benefits of this policy.