After facing a severe shortage of medical oxygen during the peak days of COVID-19 in 2021, the State Cabinet on July 15 decided to provide incentives, including 25% capital subsidy, for companies to set up medical oxygen plants in Karnataka.
At a Cabinet meeting chaired by Chief Minister B.S. Yediyurappa, the government decided to provide 25% capital subsidy on the value of fixed assets, subject to ₹10 crore minimum investment, to set up medical oxygen plants in Karnataka.
Following the demand for incentives from the Oxygen Manufacturing Associated Enterprises in Karnataka, it was decided to give 100% exemption on electricity duty for three years after commencement of oxygen production, and additional power tariff subsidy of ₹1,000 per tonne of oxygen supplied to medical hospitals of the government.
The Cabinet also decided to give 100% stamp duty exemption on land and loan documents’ registration and reimbursement of fees charged for conversion of land to set up oxygen plants, said Minister for Home, Law and Parliamentary Affairs Basavaraj Bommai after the meeting.
At present, the Minister said Karnataka has nine medical oxygen manufacturing plants with 815-tonne manufacturing capacity and 5,780-tonne storage capacity, and six suppliers.
With investments continuing to flow to Karnataka, the State Cabinet on July 15 decided to conduct a ‘Global Investors’ Meet – Invest Karnataka’ on February 9-11, 2022 at Palace Grounds in Bengaluru.