The Medical and Industrial Gas Manufacturing Unit in Gelegphu has temporarily shut down its production after operating for just a week. The produce hit Bhutanese market from March this year.
The medical and industrial manufacturing unit in Gelegphu was established at a cost of Nu 30 M initiated to substitute import and cater domestic demand to six central dzongkhag hospitals and other industrial service centres, which fall close proximity to Gelegphu. It has a capacity of producing 200 cylinders per day. It operated only one week producing 1200 cylinders and had to stop the production temporarily with no buyers. There are more than 1000 filled cylinders in stock with no customers. The factory could sell only 70 cylinders in the local market.
It has been three months since we started the production. still, I am unable to find a proper market to sell the oxygen cylinders. This is mainly because we are new in this line of business and could not run it as expected,” said Chencho Gyeltshen, the proprietor of Medical & Industrial Gas Manufacturing unit, Sarpang.
He added the demand for industrial gas, which is mostly used by the automobile workshops, is very low. in a month, a workshop hardly finishes one cylinder. Whereas the medical gas is entirely a different hurdle. The hospitals have to follow procurement rules and cannot buy directly from his firm even if the prices are comparatively low. Medical (oxygen) cylinders for hospitals are centrally procured and supplied from Phuentshogling. Moreover, the unit must be registered with the Drug Regulatory Authority (DRA) to bid for the supply of oxygen cylinders to the hospitals. And one of the requirements is that the firm must have a chemist.
“We have approached the DRA stating that we failed to find a chemist. We would now like to request the Authority to provide us with an experienced person if it has any. We are willing to pay as per their demand,” the proprietor added.
Even after registration, he said it would be difficult to win the contract from his competitors based in Phuentshogling considering the supply route. He will have to include the transportation cost from Gelegphu to Phuentshogling, where the central medical depot is located. This will escalate the quotation rate for him. Therefore, he said Dzongkhag hospitals closer to his unit could directly procure oxygen cylinders from his firm, it would save time and cost for both the parties.
The company produces oxygen in liquid and gases form and Nitrogen in liquid form. The unit is located along the Gelegphu – Zhemgang highway, which is almost ten kilometres away from Gelegphu town.
