Special incentives for oxygen manufacturing units in Karnataka

The Karnataka Cabinet on Thursday approved a scheme to provide special incentives for Oxygen manufacturing and associated enterprises in the State.

Pointing out that the state had faced a shortage of oxygen due to Covid-19, Law and Parliamentary Affairs Minister Basavaraj Bommai said there were 9 oxygen manufacturing units/factories in the state and six oxygen suppliers.

“The manufacturing capacity is 815 MT and storage capacity is 5,780 MT.To increase the capacity, if any entrepreneurs come forward, we will give them incentives,” he told reporters after the cabinet meeting.

The incentives include capital subsidy of 25 per cent of the value of fixed assets subjected to minimum of Rs 10 crore, 100 per cent exemption from electricity duty for three years after commencement of commercial production, additional power tariff subsidy of Rs 1,000 per metric tonne on supply to the government.

There will also be 100 per cent stamp duty exemption and reimbursement from loan and land documents, concessional registration charges, 100 per cent reimbursement of land conversion fees, he added.