The development comes after more than a dozen people died when an oxygen-fed fire ripped through a coronavirus ward in a populous western state.
India reported the world's highest daily tally of coronavirus cases for the second day on Friday, surpassing 330,000 new cases, as it struggles with a health system overwhelmed by patients and plagued by accidents.
In its response, the Centre said, one of the primary reason is that three of the plants from which oxygen is to be supplied are situated at Rourkela, Durgapur and Kalinganagar. "Patients' lives are at risk".
The situation is worsening by the day with hospitals taking to social media to plead with the government to replenish their oxygen supplies and threatening to stop admissions of new patients.
Secretary of State Antony Blinken said the USA was working closely with the Indian government to send more support and supplies.
And the shortfall in oxygen supply is now leading to deaths.
As Indians were cooped up indoors for months, industrial tanks were repurposed for medical use and tanker trucks raced over empty motorways to transport oxygen across the vast country to hotspots.
Health workers arrive at Lok Nayak Jai Prakash (LNJP) Hospital in Old Delhi with a patient. "Please tell us that", the court asked the Union government while hearing Maharaja Agrasen Hospital's petition.
Others said that it could also be a more unsafe variant of the virus coursing through India.
The New Delhi government issued a list of a dozen government and private hospitals facing an acute shortage of oxygen.
And the devastating effect is evident in the images pouring in from crematoriums across the country - of anguished families waiting for hours to perform last rites, mass cremations as cities run out of space to honour the dead and incessant plumes of smoke from funeral pyres. The hospital has appealed to authority in the national capital to arrange oxygen at the earliest.
It quoted unidentified officials as saying "low pressure oxygen" could be the cause of their deaths. The police escorted the two vehicles carrying 71 oxygen cylinders back to the hospital by providing a green corridor, they said.
"Allocation [for Delhi] is of 480 MT [metric tonnes].we are getting 350-380 MT", Mehra said, according to Bar and Bench.
Sir Ganga Ram Hospital (SGRH), Batra Hospital, Jaipur Golden Hospital, Fortis Shalimar Bagh, Mata Chanan Devi, Metro Hospital Preet Vihar, and Saroj Hospital made SOS calls about a shortage of medical oxygen.