BENGALURU: After facing a severe shortage of oxygen during the second wave of the COVID-19 pandemic, the Karnataka government is looking to make a course correction. The Karnataka cabinet on Thursday approved a slew of incentives to encourage more oxygen manufacturing units to be set up in the state to counter possible shortages. The move is also a step towards ensuring the state's preparedness for a possible third wave of COVID-19.
"We faced an oxygen shortage during COVID-19 second wave. To eliminate the shortage and encourage more oxygen production and storage, the cabinet has approved an incentive scheme for oxygen manufacturing associated enterprises in Karnataka. We currently have nine manufacturing units and six suppliers. The production capacity is 815 metric tonnes and storage capacity is 5780 metric tonnes. These incentives will be given to entrepreneurs who come forward to increase both," Basavaraj Bommai, Minister for Law and Parliamentary affairs told the media after the cabinet meeting.
Here are the incentives approved by the cabinet:
Capital subsidy of 25% on the value of fixed assets subject to a minimum investment of 10 crores.
100% exemption from electricity duty for three years after commencement of production.
Additional power tariff subsidy of Rs 1000 per metric tonne of oxygen supplied to the government.
100% stamp duty exemption and reimbursement of loan and land documents.
Concessional registration charge at Rs 1 per Rs 1000 for loan documents, sale deed and lease deed.
100% reimbursement of land conversion fees.