The government has further relaxed the norms guiding the mandatory diversion of industrial oxygen for medical use, now allowing upto 41.8 percent of oxygen produced in the country to be allowed for industrial use.
According to an order dated 8 June, the Department for Promotion of Industry and Internal Trade (DPIIT) allowed manufacturers and suppliers to now supply revised quantities of oxygen for industrial use. As the second wave of the COVID-19 pandemic slowly subside and medical oxygen demand follows suit, the government is slowly allowing more oxygen to be used for industrial purposes.
Currently, the government limits the amount of oxygen that can be used for industrial purposes for all producing units. This is based on their geographical location, production capacity and demand for both medical and industrial oxygen in the sector.
All producing units are grouped into the five regions of the country, namely North, West, Central, East and South and the limit of oxygen allowed for industrial purposes varies among them.
The latest order shows that 61 percent of oxygen production capacity in the North region is allowed for industrial use, the highest in the country. This is followed by 51.5 percent of East region, 50 percent of Central region and 49 percent of West region. Only 8 percent of oxygen production capacity in the South region is allowed to be used for industrial purposes, owing to the relatively higher incidence of cases persisting in Karnataka, Kerala and Tamil Nadu.
Sectors covered
Late in May, the Home Ministry reviewed the DPIIT's request to again reopen industrial oxygen supply to key industries. On May 31, a letter from the Disaster Management Division of the Home Ministry allowed oxygen to again reach a range of industries.
This included continuous process plants such as furnaces, refineries, steel, aluminum, copper processing plants, infrastructure projects. Micro, Small & Medium Enterprises (MSMEs), exporters of the manufacturing sector requiring oxygen for production and food processing units.
However, the Home Ministry has approved the request on a temporary basis and under the condition that the DPIIT ensure adequate supply of liquid medical oxygen to key points in the medical, civil and defence ecosystem. This includes for hospitals and other medical purposes according to demands of states and union territories and the defence forces.
Manufacturing of ampoules and vials, pharmaceuticals, oxygen cylinders, PSA plants and neutral glass tubing have also been allowed.
On April 24, the DPIIT limited the industrial use of oxygen to only nine key sectors, including steel plants, petroleum refineries, pharmaceuticals, food and water purification, among others. The decision to restrict the industrial usage of oxygen had been taken to meet the rising demand for medical oxygen.
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