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Having made several representations at the State and Central ministerial level, the South Gujarat’s small gas consuming industries have now approached the Prime Minister seeking intervention in connection with a 58-per cent reduction in APM gas supply by GAIL.
The Associated Chambers of Commerce and Industry of India (Assocham) has written a letter to the Prime Minister Narendra Modi on behalf of the South Gujarat Small Gas Consumers Association (SGSGCA) raising concerns of the 33 industrial units, mostly of glass and ceramics in South Gujarat.
In the letter dated December 4, signed by Secretary General, D S Rawat, the Assocham has called the move by GAIL to curtail cheaper gas supplies to the small units to be ‘contrary to the “Make in India” concept of the Prime Minister himself.’
Since, September 27, pursuant to the Petroleum and Natural Gas Regulatory Board (PNGRB)’s guidelines, GAIL had curtailed the APM gas supplies to these units and diverted it from non-priority sector to meet the requirements of CNG and PNG consumers.
This has rendered these 33 energy intensive units unviable thereby putting at stake 30,000 direct and 120,000 indirect jobs. Following this, the units have cut down their production and are feared to opt for a complete closure, the Assocham cautioned.
Assocham maintained that the cut on APM gas supplies should be first made effective on other large non-priority sector gas consumers including steel, petrochemicals, refineries, who put-together consume about 7 million standard cubic meters per day (mmscmd) of gas, against 0.6 mmscmd consumed by 33 small South Gujarat industries, most of which were set up in the 1980s on the invitation of the Government to utilize the low pressure gas from the isolated fields.
As a solution, the Assocham has suggested a uniform cut of 0.5 per cent across the board on the overall domestic gas supply of 60 million metric standard cubic meters per day (mmscmd) as was done in 1997 in response to Supreme Court Order to provide for Taj Trapezium customers.
Earlier in November, at an event in Mumbai, Swati Piramal, vice chairperson of Piramal Group (including Piramal Glass), had also presented a petition on behalf of SGSGCA to Gujarat Chief Minister Anandiben Patel, and Saurabh Patel, minister for energy seeking their intervention into the matter.
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