The government started running Oxygen Express trains with tankers to meet the shortage at hospitals, Railroad Minister Piyush Goyal said.
The number of cases across the country of around 1.3 billion rose overnight by 346,786, the health ministry said, for a total of 16.6 million, including 189,544 deaths.
A healthcare worker pushes an oxygen tank at a temporary hospital for Covid-19 patients in New Delhi.
Most hospitals in India aren't equipped with independent plants that generate oxygen directly for patients, primarily because they require an uninterrupted power supply, which is a rarity in many states.
However, Covid-19 deaths across India rose by 2,624 over the past 24 hours, the highest daily rate for the country so far.
The stories are told in social media posts and television footage, showing desperate relatives pleading for oxygen outside hospitals or weeping in the street for loved ones who died waiting for treatment.
The New Delhi Television channel later cited the hospital chairman as saying the deaths can not be ascribed to a lack of oxygen.
In a sign of the desperation unfolding over the shortages, a high court in Delhi warned Saturday it would "hang" anyone who tries to obstruct the delivery of emergency oxygen supplies, amid evidence that some local authorities were diverting tanks to hospitals in their areas.
India's underfunded health system is tattering as the world's worst coronavirus surge wears out the nation, which set another global record in daily infections for a second straight day with 332,730.
The United States has faced criticism in India for its export controls on raw materials for vaccines put in place via the Defense Production Act and an associated export embargo in February.
Officials from both countries are engaged at various levels to ensure "a small supply of inputs and components from USA companies for production of COVID-19 vaccines in India", a spokesman at the Indian embassy in Washington, DC told Reuters.
A man reacts next to the body of his father who died from COVID-19 at a crematorium in New Delhi India
Workers load oxygen cylinders at a charging station on the outskirts of Prayagraj, India, Friday, April 23, 2021.
When the news anchor asked Bankata what happens when a hospital issues an SOS call as his had done, Bankata replied: "Nothing".
As the oxygen scarcity deepened, local officials in several states disrupted movement of tankers and diverted supplies to their areas.
India reported more than 340,000 new cases on Saturday.
Washington is under increasing pressure to do more to help India, the world's largest democracy and a strategic ally in President Joe Biden's efforts to counter China, as it grapples with a record-setting surge in coronavirus infections.
Help and support also appeared to arrive from archrival Pakistan, with politicians, journalists and citizens in the neighboring country expressing support for people in India.
Hours later, the hospital received supplies to run for few hours. Days before, the news agency reported, a minister in Haryana blamed Delhi authorities for looting an oxygen tanker when it was crossing their territory.
British Prime Minister Boris Johnson also said he is looking at how the United Kingdom could help India.
White House Press Secretary Jen Psaki on Friday said US and Indian officials were working to find ways to help address the crisis, but gave no timetable for the support. We have not yet fully characterized the variants and the relationship between the ability of the vaccines to protect.
"We are just burning bodies as they arrive", said Sharma.