The facility will import bulk liquid helium containers from Praxair's production plant in the US to supply liquid helium in 100-500 litres dewars and gaseous helium in tube trailers and cylinders.

The facility is to supply liquid and gaseous helium to magnetic resonance imaging (MRI) research, diving and other markets throughout India. The move is part of Praxair's announced plans to invest $200 million by 2000.

The distribution centre not only represents an important step in the growth of Praxair's helium network in the Asia-Pacific region, but also the setting up of a toehold in a potentially large market.

Praxair is one of the largest producers of helium in the world, with more than 50 distribution centres. As the first commercialhelium supplier, Praxair has led the development of helium-related equipment and technologies since 1917.

Liquid helium is used to cool superconducting magnets, which are essential to the operations of MRI systems and research instruments. Gaseous helium is used in the production of optical fibres and semi-conductors, welding operations, analytical processes, leak detection, balloons and other lighter-than-air applications.

Incorporated in 1996, Praxair India is one of the leading suppliers of industrial gases in the country, with manufacturing facilities in Calcutta, Mumbai, Bangalore, and Delhi. The company is setting up air-separation plants for Jindal Steels in Karnataka and Haldia Petrochemicals in West Bengal, while the one for Hospet Steels has been commissioned.

The industrial gases sector has been hit by a major recession in its user industries like steel, chemicals, food and others. Even BOC India, the world's largest player and also the biggest in India, had to close down some of its plantsin recent months.