Raj announces perks for pvt hospitals to set up oxygen plants

Rajasthan, which became the first state to announce a capital subsidy package for medical oxygen manufacturing units, has now started encouraging private hospitals to set up oxygen plants in the state.

The private facilities in the state can now avail the benefits of the government's special package, wherein the minimum investment criteria has been relaxed.

Industries Minister Parsadi Lal Meena said, "As there were requests from the medical fraternity for inclusion of hospitals establishing oxygen plants for incentives under the package, and lowering the investment bar for them, we have have now extended the benefits to private hospitals also, understanding the need of the hour. This step of the government will help equip us better for the future."

The Industries Department has held quick rounds of discussions with the representatives of the state's major private hospitals and has understood their requirements in setting up the oxygen plants.


Following this, the state government has decided to cover private hospitals under the special package that is being offered to the enterprises.

Under this special package, if any hospital is making investments for setting up a medical oxygen plant during the current fiscal, it can avail capital subsidy equivalent to 25 per cent of the investments made in the plant and machinery, or a capital subsidy equivalent to Rs 40,000 per nm3/hour or m3/hour of medical oxygen manufacturing capacity, whichever is lower, subject to a maximum of Rs 50 lakh.

For ease of understanding, the hospitals are required to set up a plant having at least eight nm3/hour medical oxygen manufacturing capacity. i.e.. approximately 30 cylinders per day.


Similarly, enterprises other than hospitals are also eligible to avail the benefit of capital subsidy equivalent to 25 per cent of the investment made in plant and machinery and equipment, subject to a maximum of Rs 50 lakh.

Only investors who have set up and commenced operations between April 30 and September 30 can avail the benefits of this special package. - IANS