Inox Air Products Pvt Ltd plans to make an additional investment of ₹150 crore to set up a new 200 TPD cryogenic medical and industrial gas plant in Hosur. It is one of the largest suppliers of medical oxygen in the State having their units in Manali, Salem and Tirunelveli.
CVI Trade Pvt Ltd has confirmed their expression of interest to arrange funding for the project.
Inox expects to commence production within December 2020. They have requested the State government to extend the capital subsidy applicability till December 2022. CVI Trade plans to fund in the form of private potential equity investment through their client MKM WIRA (M) SDN. BHD, a Malaysian company.
Under Tamil Nadu’s special incentive package for establishing liquid medical oxygen plants, the State government has given a special subsidy of 30 per cent over 5 years in equal annual instalments if they can commence commercial operation on or before December 31, 2020.
After examining the request, the government has ordered that the liquid medical oxygen plants with minimum capacity of 10 MT/day, having minimum investment of ₹50 crore, shall be given a capital subsidy of 30 per cent in five years in equal annual instalments, if they can commence commercial production on or before December 31, 2022, says an order issued by Industry Secretary N Muruganandam.
The special package incentives are to promote investment in oxygen augmenting facilities such as oxygen concentrators, oxygen cylinders, medical oxygen and large liquid medical oxygen plants in the State.
The State government also envisaged in the Tamil Nadu Industrial Policy 2021 land cost incentive; stamp duty incentives; electricity tax incentives; training subsidy and intellectual property creation incentive, the Order said.