The recent oxygen crunch explained||Why surplus producer India faces crisis?

[Birsa]

Amid the shortage of oxygen supply, some state governments have blocked tankers from reaching other states where several hospitals ran out of their oxygen stock. But can states do that in a bid to mitigate the shortage? Read on to know.

 

The short supply of oxygen is hurting the fight against Covid-19 in the second wave of the coronavirus pandemic across several states. At least two high courts had to intervene to restore the supply of medical oxygen to the affected states — Maharashtra and Delhi.

Some state governments have appeared to adopt a protectionist approach and stop the supply of medical oxygen to outside their respective states. Uttar Pradesh, Haryana and Rajasthan, for example, blocked tankers from reaching Delhi, where several hospitals ran out of their oxygen stock.

The Delhi government moved the Delhi High Court seeking direction against a supplier of liquid medical oxygen (LMO) based out of Uttar Pradesh. The high court ordered the company to honour its contract with the Delhi government. The company had said the state administration directed it to meet the local demands first.

CAN THE STATES DO THAT?

It appears to be a grey area. The fact that a situation like this was never experienced before, the guidelines have not been crystal clear. This is why the state governments are complaining to the Centre and the high courts are issuing directions considering humanitarian grounds to resolve oxygen supply disputes.

Medical oxygen is not a controlled commodity. Its prices are, though, controlled by the National Pharma Pricing Authority (NPPA) — an independent body under the chemicals and fertilisers ministry. Its trade is not controlled and oxygen producers arrive at separate contracts with industries, hospitals and also the governments.

 

Since one or the other state government has the territorial jurisdiction over the oxygen producers, some have directed these companies to meet the local requirements anticipating a substantial rise in demand due to exponentially increasing Covid-19 cases.

HOW OXYGEN SUPPLY IS BEING MONITORED NOW?

Currently, oxygen is being allocated centrally and its supply being monitored by an Empowered Group 2 (EG 2) constituted by the Prime Minister’s Office (PMO) to look into the oxygen supply to states.

The EG 2 has members from all the states and all major oxygen producers, the All India Industrial Gases Manufacturers’ Association (AIIGMA), Petroleum and Explosives Safety Organisation (PESO), the road transport ministry and the Indian Railways.

Different ministries and departments — the family and health affairs, the commerce and industry ministry, department for promotion of industry and internal trade (DPIIT) and Central Drugs Standard Control Organisation — of the central government are engaged in dealing with oxygen supply crisis and allocating LMO to states. Some of their orders are being challenged in courts.
 

WHY IS OXYGEN-SURPLUS INDIA FACING THIS CRISIS?

India is among the leading oxygen producers. In normal times, India is actually a medical oxygen-surplus country. Such a general situation explains why interstate transport of medical oxygen did not require regulations. Most oxygen manufactured in India is consumed by the industry.

In pre-Covid-19 times, India had a demand of 700 tonne per day (TPD) of liquid medical oxygen. During the first wave of Covid-19 pandemic in 2020, the demand for medical oxygen rose four times to 2,800 TPD.

During the second wave of Covid-19 pandemic, the demand shot up over 5,000 TPD of medical oxygen — seven times the pre-pandemic requirements. Such a spike in demand for medical oxygen is due to the volume of Covid-19 cases in the country.

Even at this rate, India is producing more medical oxygen than the requirement in hospitals. India’s daily oxygen-producing capacity is 7,287 tonnes per day.

What is bogging India down currently is the shortage of cylinders and tankers that can transport oxygen from production plant to hospitals. Some firms such as the Tata Group even announced that it would be importing cryogenic containers for the transport of medical oxygen.