INOX to benefit as TN extends incentive period for new O2 plant

Oxygen plants

Chennai, (Asian independent) Tamil Nadu government has extended the period of investment in setting up liquid medical oxygen plants to be eligible for special incentives till 31.12.2022.

Earlier, the state government had said companies that set up 10 ton per day liquid oxygen plants on or after 1.1.2021 and start production by 31.11.2021 would be eligible for the special incentives.

The state government modified the incentive scheme 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 per cent over five years in equal instalments.

The companies have to set up the oxygen plant between 1.1.2021 to 31.12.2022 and start commercial production by 31.12.2022.

The companies are also eligible for other incentives like land/stamp duty/electricity tax/worker training subsidy.

These apart, an intellectual property creation incentive up to 50 per cent of the expenditure subject to a maximum of Rs.30 lakh is also provided.

Inox Air will be setting up a 200 tpd ultra high pure cryogenic medical and industrial gases plant at Hosur at an outlay of Rs.150 crore.

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.