Updated: April 22, 2021 4:59:15 am
The disruption in supply of oxygen for industrial use would temporarily impact revenues of small and mid-sized companies in at least five sectors, rating firm Crisil said. These sectors include metal fabrication, automotive components, shipbreaking, paper and engineering. With demand for medical oxygen soaring, the central government has barred industrial use (except by nine sectors) from April 22, 2021.
Demand for medical oxygen is estimated to have rocketed five-fold in the second week of April versus pre-pandemic levels as Covid-19 infections took off. The consequent higher supply of medical oxygen will save lives, but have a bearing on some sectors.
Gautam Shahi, director, Crisil Ratings, said, “The disruption in the supply of oxygen for industrial use would temporarily impact the revenues of small and mid-sized companies.”
In a tweet, the Tata Group said Tuesday it is “committed to doing as much as possible” to strengthen India’s fight against Covid-19. The group said that it would be importing 24 cryogenic containers to transport liquid oxygen to help overcome its shortage.
Reliance Industries has tweaked manufacturing at its Jamnagar oil refineries to produce over 700 tonnes a day of medical-grade oxygen which is being supplied free of cost to states badly affected by Covid-19, sources said.
Meanwhile, the Vedanta group has offered to supply oxygen from its closed Sterlite copper plant at Thoothukudi in Tamil Nadu. Vedanta said that the plant contains two oxygen plants with a combined production capacity of 1,050 tonnes of oxygen daily.
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