Oxygen Manufacturing Plant in India

Here’s a task for you, just imagine a moment without oxygen. Even a mere thought of it can send chills down the spine of millions of people and why wouldn’t it? Oxygen, a vital support system, makes our existence possible on this beautiful planet. Not just us, but every living species from a little mockingbird to a giant elephant, everyone is alive because of it. Even though we’ve taken it for granted since the beginning of time, the recent covid pandemic has shown us how chaotic a situation can be in its absence. It wouldn’t be wrong to say that inadequate availability of oxygen during last year was as much as responsible as the covid virus for making lakhs of people suffer their last moments of life in pain and pushing them into the mouth of death. 

Apart from the medical industries, oxygen is highly in demand in other industries as well, such as the manufacturing of steel And glass, the fabrication of metal, etc. And, this is the reason we see thousands of today's entrepreneurs taking interest in setting up oxygen manufacturing plants in India as a viable business venture. Some of you might be wondering “doesn’t the production of oxygen happen naturally”? Well yes, but now oxygen can also be produced artificially and for that, all the credit goes to modern science. All it requires is to set up an oxygen manufacturing plant and you’re good to go. 

Use of Oxygen Across Major Industries

• Steel Industry

You’d be surprised to know that out of the total world’s steel, the production of more than half of it happens using the basic oxygen process (BOP), which requires a great amount of oxygen to boost the production capacity of the furnace. Apart from this, oxygen also plays a vital role during the removal process of impurities from molten steel.

• Medical Industry

Oxygen acts as a backbone for our healthcare industry as insufficient availability of it can cause a lot of trouble for doctors treating patients with breathing issues, heart problems, and other diseases. Oxygen also comes in handy during the treatment and surgical procedures of patients with burn injuries.  

• Water Treatment Plants

Apart from using oxygen to remove water’s impurities and pollutants, the water treatment industry also uses it to quicken the process of breaking down organic matter. 

• Aviation Industry

To sustain the lives of its passengers and crews at high altitudes, the aviation industry deploys oxygen systems. It ensures the timely distribution of oxygen throughout the journey. Oxygen is also used in aerospace applications, such as spacesuits, and life support systems. 

• Glass Industry

The oxygen demand is also high in the glass industry as it helps enhance the overall temperature of the furnace, bring down the melting time, and make the quality of the glass better. 

The role that oxygen manufacturing plants play can’t be underestimated at any cost as they ensure the availability of oxygen not only for humans in critical times but also for a number of industries. Food, chemical, electronics are some other major industries where a continuous supply of oxygen is necessary for efficient and reliable day-to-day operations. 

Even though the possibility for another covid wave is not that much, it has taught all of us to be prepared at all times. This is because no one can predict what exactly can hit humanity in these uncertain times. When the second wave of COVID-19 was creating havoc all around the country, the Indian government temporarily suspended the use of oxygen for industrial purposes to tackle the shortage of it in medical facilities. This action not only led to a huge surge in the demand for oxygen in various industries for their daily operations but also exposed new entrepreneurs to a great opportunity to set up an oxygen manufacturing plant. An oxygen manufacturing plant in India has many benefits as follows-

• In Great Demand

Your oxygen manufacturing plant can act as a reliable source for meeting the demand for oxygen, which is already pretty high in industries like healthcare & steel, and expected to grow at an unprecedented rate in the near future. 

• Availability of Labour

Success of any business venture depends a lot on how productive and efficient its workforce is and being in India not only helps you gather one for your oxygen manufacturing plant but also gives you an edge over your foreign competitors. 

• Competitive Advantage

Having your own oxygen manufacturing plant can help you dominate the competitor organizations, which are dependent on importing oxygen. It can also bring down the cost of your product as you’d be able to produce oxygen locally at a cheaper cost. 

• Raw Material

The major raw material that goes into producing oxygen in a plant is nothing but atmospheric air. Apart from this, you may also need products like catalysts, lubricants, adsorbents, and molecular sieves which are easily and abundantly available in the Indian market. 

Starting an Oxygen Manufacturing Plant in India

To be able to set up oxygen manufacturing plant especially for the medical purposes, one must know that it can be produced through various ways, however the most commonly used ways that are employed in generating oxygen are discussed below:

• Pressure swing adsorption: Under this method, pure oxygen is generated after all other gases like nitrogen are separated from the air mixture under the influence of high pressure. This method generally demands the use of machinery having two vessels which in turn separates the gases. This method is quite popular in every corner of the world and the most preferred one when it comes to producing oxygen on an industrial basis. Small scale industries make extensive use of this method.
• Fractional distillation: It is yet another method used to produce oxygen. In contrast to the above-mentioned method, it is one hand above since it is much efficient and yields oxygen that is pure. In this method, the first thing done is to make the air dust free. After the dust has been removed, the air is subjected to compression and then all the other gases like carbon dioxide and moisture are removed from the air to make it pure.

Thereafter the purified air is made to pass by means of heat exchanger which liquefies it and the oxygen is separated from nitrogen. The final step is distillation wherein the purified oxygen is yielded and then it is collected for commercial transportation.

This method is employed by large-scale industries that renders mass production of oxygen.

• Raw materials: The raw material is easily and abundantly available which none other than the atmospheric oxygen is.
• Production capacity: oxygen manufacturing plant comes packed with varied production capacities.
• Requirement of machinery: The following machines and equipment’s are required

1. Suction filter
2. Aftercooler
3. Moisture separator
4. Cascade cooler
5. Activated carbon filter
6. Chilling unit
7. Molecular sieve battery
8. Ceramic filter
9. Liquid oxygen pump
10. Expansion engine
11. Plant that softens water

• Land requirement: The land is must to set up the plant. Approximately the land area is required around 18000 square feet.

Licenses Required For Setting up an Oxygen Manufacturing Plant in India

To set up an oxygen manufacturing plant in India, you need to get numerous licenses and permits from relevant government authorities. Here’s the list of licenses mandatory to obtain for setting up an oxygen manufacturing plant:

• Certificate of Incorporation

Certificate of Incorporation, a legal document issued by the Ministry of Corporate Affairs, gives you the right to form a corporation and operate it as a legit & transparent business entity. 

• Consent From State Pollution Control Board

Oxygen manufacturing plants come under the purview of the State Pollution Control Board as they have the potential to release pollutants or wastage that can harm the nearby environment. Therefore, you need to obtain a No Objection Certificate (NOC) from it as approval to set up and run your plant. 

• Factory License

Under the Factories Act of 1948, every factory owner in India is required to obtain a factory license to run its operations. The act mandates every factory to get registered with the local authorities, such as municipal corporations, before carrying out its activities.

The issuing authority of the factory license lies with the Department of Factories and Boilers, which regulates welfare-related aspects of people working in such facilities. 

• NOC From the Fire Department

Oxygen manufacturing plants are bound to get a fire clearance certificate from the fire department because they deal with compressed oxygen, which is considered explosive in nature and can be fatal if dealt with carelessly. The fire department conducts a fire safety audit of the manufacturing plant and issues the No Objection Certificates when it finds all the compliance related to fire safety has been taken care of. 

• Approval from PESO (Petroleum And Explosives Safety Organization)

Petroleum And Explosives Safety Organization (PESO), formerly known as the Department of Explosives, requires you to obtain its approval if you’re dealing in products of explosive nature. 

The license is required to be fetched under the Drugs and cosmetics act, of 1940 which deals with the sale and manufacturing of oxygen. Schedule K of the Act mentions certain exemptions which are given below:

• Oxygen ninety-three percent IP together with oxygen ninety-three percent USP are exempted.
• Another exemption deals with the exemption is oxygen ninety-three percent which is supplied by a hospital.

Also, medical oxygen comes under the Essential Commodities Act.

Additional Certifications For Setting Up An Oxygen Manufacturing Business

• Quality Management System (QMS) certificate
• ISO (International Standard Organization) certificate
• Udhayam Registration to get benefits of government subsidies and schemes
• Trademark registration to protect IPR (Intellectual Property Right) assets

Fire Clearance Certificate

• Aadhar card and PAN of the applicant. 
• Photographs of the entire oxygen plant’s premises from inside. 
• Paperwork regarding the electrical wiring.
• Sets of building plans through building authority.
• Model of the building
• Checklist certified by the architect

Factory/Trade License

• ID proof of the applicant.
• Utility bill of the premises.
• Address proof of the premises (Rent agreement in case of rent/lease)
• PAN of the company.
• Blueprint copy of the premises.
• Fire clearance certificate from the fire department.
• Municipal corporation tax receipts.

NOC from State Pollution Control Board

• Ownership proof of the premises
• Electricity and water bills
• Aadhar of the applicant
• PAN of the oxygen manufacturing Plant
• Registration proof of the plant
• CA letter manifesting the total project cost of the plant
• Site plan of the project

PESO License

• Application documents (application form, contract with AIR for a minimum of 5 years, technical competence proof of AIR, etc.).
• Business Licence of manufacturer, plant, and AIR.
• Global organization chart.
• Product ATEX/ IECEx certificates.
• Test Reports, QAR (Quality Assurance Report)/QAN (Quality Assurance Notification).
• List of production machinery and test equipment.
• ISO certificate.
• Videos of the manufacturing facility.
• Commercial details such as sales figures of the last three years, a list of Indian consumers, hazardous area installation information like installation location, the intended use of machinery etc.

The very initial step is to get hold of the atmospheric oxygen which is done through the multi stage compressor which compresses it to the requisite pressure or working pressure. The compressed air is made to pass through a pre-cooler which ensures that carbon dioxide is removed from the air.

It is then made to pass through the exchanger wherein it is allowed to cool down. This cold air, certainly a part of it passes through the expansion machine, the left part passes through the second exchanger.

In the lower pressure column, both of these parts of air are made to unite wherein it witnesses being partially liquefied. Again, this liquefied air is made to pass through expansion.

Following this process and a few more steps subsequently, an oxygen product is generated.

Considering the havoc created by coronavirus, there is an urgent requirement of medical oxygen manufacturing plants to be established in India. Corpseed will provide solutions and complete the whole procedure to set up oxygen manufacturing plant for you.

The cost of setting up a plant that can supply 24 cylinders of gas per day is around Rs 33 lakh, and it can be done in a few weeks. 550 LPM oxygen would be required for a 240-bed hospital. However, Covid-19 has resulted in a significant increase in oxygen consumption. According to industry sources, a PSA plant costing around Rs 50 lakh would be sufficient for such a hospital. In terms of monthly oxygen bill reductions, the hospital would have recovered its investment in 18 months.

We, at Corpseed, have a team having years of experience and extensive knowledge relating to various horizons of laws and compliances involved in plant setup as well as the processes involved in Oxygen Manufacturing. We perform desk-based research, documentation, and coordination to provide consultation to clients which helps them to set up oxygen manufacturing plants as per the laws applicable in India. For all your business needs, Corpseed acts as a one-stop solution.