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What Is The Medical Oxygen Plant Setup Cost In India

What is the Medical Oxygen Plant Setup Cost in India

During the peak of the Covid-19 epidemic in 2021, healthcare facilities faced an acute shortage of medical oxygen which caused numerous deaths and health complications in many. This shortage has led to a surge in demand for medical oxygen generators to ensure they have a constant supply of medical oxygen for any contingency without the need to rely on suppliers every time.

The honorable Prime Minister of India, Narendra Modi has taken the initiative to establish 35 medical oxygen plants under the PM CARES program and has also encouraged medical institutions to set up oxygen generators on their premises

What is the Medical Oxygen Plant Setup Cost in India

The cost for setting up such a plant may vary on the capacity of the plant and also the health institution's financial condition. Generally, this cost can vary between a few lakhs to several crores. Here are a few points to be considered with regard to the cost:

  • For small-scale generators with a capacity of 6 cubic meters per hour, the initial investment may range anything between INR 30-35 lakhs. They can produce upto 25 cylinders daily.
  • In the case of medium-scale plants with a capacity of 40 cubic meters per hour, the cost of investment can go upto 1.25 crores.
  • When it comes to large oxygen generator plants, the investment amount can start from INR 5 crores and go upto 50 crores. Much of this cost also depends on the technology and scale of the business.
  • Besides the initial setup cost, the ongoing expense incurred as a result of operations also needs to be accounted for. Electricity, maintenance, and other utility cost will also need to be factored in to determine the overall cost
  • Cost factors such as land paperwork, construction of the plant, regulatory norms, and manpower cost also play an important role in determining the initial cost of setting up the plan irrespective of its capacity.

To summarize, the initial figures for the cost depend largely on the factors mentioned above. Once the budget of the investor is determined, this factor can be scaled up or down according to the project specifications.

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