Government mulls import duty waiver for concentrator parts, placing oxygen delivery gear under PLI scheme

The authorities are contemplating permitting the responsibility-free import of parts used within the manufacture of oxygen concentrators and together with concentrators and oxygen supply associated tools in the current production-linked incentive scheme for medical units, as a part of its technique to ramp up scarce medical oxygen provide within the nation.

 

This comes after the trade associations had sought extra sops to beat India’s import dependency.

“Duty on components and raw materials or capital equipment to produce oxygen related medical equipment can also be reduced to zero,” stated one other official.

Need to Rationalise Device’s Price

The official added that for sure oxygen-associated medical tools, the duties are already lowered to zero until July.

The plan, that’s being labored out between the Prime Minister’s Office, Niti Aayog, and the Department for Promotion of Industry and Internal Trade (DPIIT), additionally focuses on-demand aggregation of zeolite which is utilized in Pressure Swing Adsorption (PSA) vegetation to generate medical oxygen.

“Deliberations are on and the PMO has directed that a plan be drawn up to reduce any oxygen shortage in the country,” stated an official, including that the federal government could enable import of zeolite to an aluminium public sector endeavor in the interim. Zeolite is utilized in oxygen concentrators to soak up nitrogen.

Some different measures which can be being thought-about are market retail value or MRP labelling and value rationalisation of oxygen concentrators that are at present being bought at exorbitant costs.

In addition to defining a transparent regulatory framework for oxygen concentrators and capping their commerce margins, the plan additionally consists of making publicly accessible the applied sciences of the Council of Scientific and Industrial Research and Defence Research Development Organisation for all medical oxygen and hospital-associated tools to encourage home firms to speculate on this sector.

Oxygen Output Increased

The technique comes amid the nation witnessing oxygen scarcity because of the raging Covid-19 pandemic. Steel vegetation are manufacturing medical oxygen, railways has delivered greater than 11,000 metric tonne of liquid medical oxygen (LMO) in almost 675 tankers to varied states throughout the nation since April 19 and India has already acquired oxygen vegetation, ventilators, oxygen concentrators, cylinders, and LMO from different international locations. Nevertheless, shortages persist, notably on the last-mile supply.

The commerce and trade ministry has stated that that oxygen manufacturing has elevated to 9,446 metric tonne (mt) per day in May 2021 from 5,700 mt each day in August 2020. Production capability has gone as much as to 7,314 mt per day, with capability utilisation taking pictures up from 84% to 129% throughout this era.