Post-COVID-19 pandemic, medical oxygen requirements have become a key focus area in the Indian medical sector. The demand for uninterrupted oxygen supply in hospitals is high. As a result, many healthcare facilities are looking to invest in an in-house oxygen generation system, and the infrastructure cost of owning a medical oxygen plant is a key factor in realizing this dream.
In this blog, we will explore the different attributes linked to a Psa medical oxygen plant setup cost in india.
Table of Contents
Factors Affecting Medical Oxygen Plant Setup Cost
Plant Capacity: The Medical Oxygen Plant Setup cost is directly proportional to its capacity. Plants with higher capacities, ranging from 5-200 Nm³/hour, tend to have a moderate price tag, generally ranging between ₹15 lac to ₹4 crore.
Technology: The selection of the technology used in the plant also impacts the cost. Cryogenic technology-based plants generate ultra-high-purity oxygen for industrial uses. It is way more expensive as compared to the pressure swing adsorption (PSA) plants.
Automation Level: Fully automatic PSA Oxygen Systems (Plants with higher levels of automation) are much more expensive than the cost of the less automated counterparts.
Space Requirements: The area required for setting up the medical oxygen plant varies as per the capacity of the plant. Generally speaking, the space starts at 20m2. The cost of acquiring or leasing this space may further add to the overall setup cost.
Additional Components: Additional system components like cylinder filling stations, boosters, etc, can also contribute to the overall setup cost.
Electricity Requirements: The requirement of the electricity in the plant also affects the overall cost. Especially, if additional infrastructure is required for these needs.
Estimated Medical Oxygen Plant Setup Cost
Based on the information gathered from various sources, the estimated setup cost for a medical oxygen plant in India can vary significantly:
Setting up a plant that can supply 24 cylinders of oxygen gas per day costs roughly ₹20 lac .The required investment cost in oxygen generators ranges from ₹15-400 lac , with the exact cost depending on the capacity required by the user.
Factors to Consider
Intended Use: Depending on the bed distribution, the capacity and flow required, the number of backup cylinders needed, etc. the plant cost varies
Capacity: Understanding the right capacity of the plant as per the demand for oxygen in the current scenario and for the future directly impacts the setup cost.
You can read the blog here: How to Calculate Oxygen Requirement of a Hospital Based on Oxygen Cylinders or Liquid Oxygen Usage
Electricity Source: There is a need to check if the plant will run on direct electricity or backup sources for eg. a diesel generator. As, this makes a big impact on the operating costs and consequently, overall Medical Oxygen Plant Setup Costs.
Maintenance and Operating Costs: As an industry thumb rule, the annual maintenance costs generally range from 5-7% of the plant’s procurement cost. Electricity consumption comprises major operational expenses.
Regulatory Requirements: Ensure compliance with all necessary licenses, permits, and regulations.
Conclusion
Setting up a medical oxygen plant in India is an important investment with the costs ranging from ₹15 lakh to ₹4 crore. It depends on different factors like capacity, technology, and automation level. The starting cost of a medical oxygen plant in India is quite high. On-site oxygen generation provides a trustable and affordable solution for hospitals and healthcare facilities which are in. By keeping the above factors in mind, healthcare providers can make an informed decision about investing in a medical oxygen plant that meets their specific needs and budget.
References:
National Library of Medicine. (2024). Cost analysis of different medical oxygen sources for a healthcare facility in India
National Rural Health Mission. (2021).Guidebook on Medical Oxygen Management System
