Oxygen is essential for the survival of all living things on Earth. Oxygen is a vital gas that is of great significance in medical care throughout the world used for breathing, to treat or prevent oxygen deficiency. Owing to the growing cases of chronic diseases and surge in global geriatric population, health facilities are faced with the dire risk of not having an adequate supply of oxygen. Furthermore, with the emergence COVID-19 Pandemic, hospitals across the globe witnessed an acute shortage of medical oxygen. By April 2021, nearly 150 million Covid-19 cases had been diagnosed around the world, with no indication of the pandemic slowing down in many areas. Medical oxygen in India has been in severe shortage as the country grapples with a deadly second wave of the pandemic.

India has no shortage of Oxygen but people are suffering/dying because hospitals do not have Oxygen. There are 500 factories across the country which extract and purify oxygen from the air. The major oxygen manufacturers in the country include Inox Air Products, Linde India, Atul Oxygen Company, Aims Industries, P K Carbonics, Vinayak Air Products, Scoop Industries, Hiltone, Raj Gas Industries, Kashmir Gases, Universal Air Products, Popular Carbonic, Raigad Carbides, Taiyo Nippon Sanso India, Phoenix Gases, Essem Gases, Rukmani Metals and Gaseous, Kolhapur Oxygen & Acetylene, Goyal MG Gases and Assam Air Products etc. Most of the oxygen plants are built near major cities and big towns. When the pandemic began even industrial gas manufacturers had no idea how much oxygen was being supplied through cylinders and how much through tanks. Nor did the government. When the stock was taken finally, it is discovered that the state of Jammu and Kashmir did not have a single liquid oxygen factory, and there were no medical oxygen makers on the island of Andamans, where cylinders were shipped from the mainland. In remote north-eastern states also, supplies were scarce. Most states, including Delhi, didn’t have a single producer and supplies had to be procured from neighbouring areas. The challenge, therefore, was to ensure supplies to far-flung districts.

Unfortunately, medical oxygen is seldom available for many people whose lives are at risk. This complex commodity can be challenging to provide, especially in rural settings where electricity, infrastructure and essential health equipment may be in short supply. Moreover, it is not possible to set up new Oxygen Production Plant or expand existing ones at short notice. That has also aggravated the demand-supply issue. With the shortage of oxygen in the hospitals in India, the government has temporarily stopped the supply of oxygen for industries. This has led to a huge surge in the demand for oxygen in the country. With both hospitals and industries facing a shortage of oxygen, the industrial production of oxygen has come to a central stage across the country. The government is advising oxygen manufacturers to scale up the production in order to meet the growing demand and ensure sufficient reserves. This crisis is also a great opportunity for new entrepreneurs to start the oxygen manufacturing plant, considering the prevailing situation in the country. 

Public health advocates say hospitals should have P.S.A. plants. Pressure Swing Adsorption is one of the most popular methods used for the small and medium scale commercial production of Oxygen gas. The PSA process is an extremely clean operation. On-site PSA Oxygen plants are safe, reliable and cost- effective that can produce medical-grade oxygen, at scale, 24 hours a day, 7 days a week. The energy and area requirements of PSA systems are reasonable. The investment in an on-site Oxygen plant can be recovered in less than 15 months. The proposed project is that of setting up of an Oxygen Production Plant Business unit at the proposed location through Pressure Swing Adsorption (PSA) Technology.

A Project Report is not only essential for obtaining financial assistance from Bank/ Financial Institution/Funding Agency but also the most important document either to participate in the development schemes of MSME Sector/ Department of Industries or in completing various time consuming government formalities connected with planning and commercial operation of the proposed business project.

This Detail Project Report (DPR)/ Business Plan has been developed in a well-structured PDF Format (Easy to Download, Convert into MS WORD through www.pdftoword.com, Edit for Personalised Customisation and Finally Printing the Report) to be presented as a Ready Project Proposal immediately thereby saving precious time of the promoter in the process of completing requisite formalities in anticipation of setting up the business project. Accordingly, following Project Templates has been deliberately left blank in order to facilitate customisation by the perspective entrepreneurs based on personal requirements and furnish necessary information on actual basis.

§ Project at a Glance                                     :             To be Filled Up as per Personal Requirements.

[Total Capital Expenditure, Working Capital, Estimated Cost of the Project, Amount of Bank Loan, Amount of Equity Capital and Amount of applicable Margin Money Subsidy – (Urban/Rural /General Category/ Special Category)].

§ General Information and Location          :             To be Furnished in the Blank Space.

[Name of the Unit/Firm, Address of the Proposed Project Location, Size of the Space Available and Occupancy under Ownership/Lease Agreement].

§ Promoter’s Background                            :             To be Furnished in the Blank Space.

[Name of the Promoter, Age, Communication Address, Educational Qualification, Work Experience and Special Training Attended, if Any].

 The Project Report/ Business Plan so presented include all the important aspects containing the following details;

CONTENTS

1.   Highlights of the Project

2.   Project Introduction

3.   The Project Proposal

4.   Prospect for Investment

5.   Potential Target Customers/Market

6.   Marketing Strategy

7.   Critical Success Factors

8.   Process Details and Technical Aspects

9.   Installed and Operational Capacity

10. Quality and Standards

11. Raw Materials and Consumables

12. Power and Utility

13. Tentative Implementation Schedule

14. Basis & Presumptions

15. Capital Investment Estimates with Detail Project Economics

16. Computation of Working Capital Requirement

17. Estimated Total Project Investment

18. Proposed Means of Project Financing

19. Estimated Annual Sales Turnover

20. Projected Profitability Statement

21. Calculation of Interest Amount

22. Depreciation Schedule

23. Term Loan Repayment Schedule

24. Debt Service Coverage Ratio

25. Break-Even Analysis

26. Projected Cash Flow Statement

27. Projected Balance Sheet

28. Internal Rate Return

29. Pay Back Period

The presentation also supplements with important facts and useful information covering the areas as indicated below;

1.   Statutory Permits and Business Licenses Required for the Project

2.   Important Steps to Start a MSME Business Unit

3.   Contact Details of Plant, Machinery and Equipment Suppliers (Total 10 Suppliers)

4.   Photographs of On-site Oxygen Plant and

5.   Basic Knowledge on Liquid Medical Oxygen.

LIST OF ENCLOSURES

ENCLOSURE-1: E-BOOK ON SCHEMES FOR MSMEs, MINISTRY OF MSME, GOVT. OF INDIA.

ENCLOSURE-2: SALIENT FEATURES OF MUDRA LOAN SCHEME, MINISTRY OF MSME, GOVT. OF INDIA.

ENCLOSURE-3: FAQ ON MUDRA LOAN SCHEME.

ENCLOSURE-4: BRIEF ABOUT PSB LOANS IN 59 MINUTES SCHEME.

ENCLOSURE-5: FAQ ON PSB LOANS IN 59 MINUTES SCHEME.

Thus the information provided would help in identifying in advance the infrastructure/resources required for the Project and approach the concerned government agencies accordingly. Hence, it becomes a complete document for further action towards realising the dream of becoming an entrepreneur.