Explained: Why Centre is Controlling Oxygen Supply to the States?

Many of us might be wondering as to why the centre is controlling the oxygen supply to the states, why states are not allowed to procure on its own.

Today, we would try to find out the reasons, as why it is better, the centre controls the oxygen supply, rather states take the main lead, to procure oxygen on its own.

Medical oxygen requirement increased 7 times

As per the industry figures, before Covid, demand for Liquid Medical Oxygen (LMO) before the pandemic began, it was mere 700 tonnes per day (TPD) across India. During the 1st wave of the corona, last year the demand for LMO increased by 4 times, that is around 2,800 TPD was needed. And now, during the 2nd wave, the demand for LMO has gone up seven times when compared to pre-Covid levels-5000 TPD. On Tuesday, the centre has said, to the Supreme court that medical oxygen in any nation cannot be unlimited and with constant and active supervision of our Prime Minister, Modi, it has been augmenting the oxygen on the basis war footing to offer relief to Covid-19 patients.

Distribution can be done in a balanced manner

The central government stated that oxygen supplies at any point of time in the nation must be distributed to all states, especially preference would be given to the those states, which has been critically burdened with high number of active Covid Cases. The Centre can ensure distribution in a balanced manner, at the same time; it would give preference to those states which needs more supply.

Able to implement innovative measures

The central government by its both, active as well as constant supervision and with the direct involvement of the Prime Minister and the Home Minister, oxygen supply would be done by war footing and it is both evolving as well as implementing measure's to ensure oxygen is supplied to the states in an efficient manner.

Few states do not have production capacity

The demand in Maharashtra is way beyond its available production of the state and it has been noted, that few states such as Madhya Pradesh do not have any production, so that they can meet their demand for medical oxygen. The centre stated that, there is already trend of increased demand in other oxygen producing states for themselves. Hence, by centre involving, it would be able to provide oxygen even to those states, which may be in dire need of oxygen, but do not have any production capacity of its own, as it is known already, states which are producing oxygen have increased demand for it.

Progressive projections forecast taken

The centre, has conducted an exercise wherein mapping of sources of supplies of the medical oxygen demand of the states which have been critically affected have been undertaken by the varied departments as states were also asked to provide progressive projections forecast the medical oxygen. This step would help the center to plan according and ensure the excess supply is routed to those which need the most.

Orders are duly approved

Based on the earlier projected requirement submitted by these critically states, about 4880 MT, 5619 MT as well as 6953 MT were mapped in an indicate framework, to ensure the supply of medical oxygen for about 12 states, so that projected demand as on 20th April, 25th April and 30th April are met, this was duly approved through order dated 15.Apr.2021.

Quotas are allotted by Central Committees

Presently, the supply of medical oxygen is allocated centrally as well as monitored through an empowered group. The EG II, headed by the secretary in the department for promotion both industry as well as internal trade, mandated by the Union Government. This explains, as to how much pressure is there from the different state governments on the Union Government, since these quotas are allotted by the Central committee.

Allegations on Centre

On Sunday, the Delhi government alleged that the centre was diverting its quota to other states.

EG II members are nominated from the states

The members of EG II are nominated are from all states, and we also have all major oxygen manufacturers, Petroleum and Explosives safety organization (PESO), All India Industrial Gases Manufacturer Association (AIIGMA) and Indian Railways and Ministry of Road Transport.

After Pandemic, no restriction on movement on LMO

One must understand medical oxygen is not a controlled commodity; its prices have been controlled by the National Pharma Pricing Authority. When the situation was normal, before Covid, India had an excess supply of medical oxygen, hence earlier there was no restriction for interstate movement. We only hope, when the pandemic subsides, there would be no levy of restriction on the movement of LMO.

Trains have been employed to move oxygen

The Railways sent nearing to seven empty tanker trains, which are owned by the ministry of defense on RoRo (roll on and roll off) train to kalmboli goods yard in Navi Mumbai, and it will have further movement to Vizag, so that it can fetch medical oxygen to the state of Maharashtra. A person close to the development has stated the Vizag industrial area does have excess oxygen, there was no high demand, hence it was moved to Maharashtra.

Centre bans use of oxygen in industrial facilities

In the wake of a surge in corona cases, the government has put restriction on the use of oxygen in the industrial facilities, except for the identified sectors beginning from Sunday, numerous firms, especially belong to the government have actively diverted oxygen supply for medical purposes. On Monday, the Indian oil has made an announcement that it has began to supply about 150 tonne of oxygen at zero cost to varied hospitals in Haryana, Delhi and also in Punjab.

INOX operating 24x7

Siddharth Jain (Director, Air Products) has stated that, his firm has been running its entire units 24x7, so that it ensure there is a continuous production of medical oxygen to above 800 hospitals. The company production capacity is about 2,000 TPD, and 25 of its 44 units making it. The company has employed its dedicated fleet of VTS enabled 550 transport tanks and also it has employed above 600 drivers, these were critical so that they can facilitate the supply of medical oxygen. Inox AP manufactures nearing to 3,300 TPD of liquefied gases.

Bharat Petroleum to supply oxygen at no cost

Bharat Petroleum has made the announcement, to supply about 100 tonnes of oxygen with no cost at varied hospitals. Last week, the Reliance industries, too, has decided to divert oxygen from its refinery use for the emergency medical requirement.

Company plans to set up 3 more oxygen plants

The IFFCO has announced that, its oxygen plant at Kalol would be producing around 33,000 litre of medical grade oxygen each day. The company has planned to set up 3 more oxygen plants at Aonla Phulpur and Pradeep.

India has unity in diversity, our nation stands united and tries to face every situation, and hence this move will also help every Indian living in different state to have supply of oxygen, even though the state where they reside may not have production capacity of oxygen.