“Tamil Nadu has suffered deeply by not having a gas strategy,” says the head of a multinational manufacturing company.
Natural gas is the fuel of the coming decade, it is “available globally and it can be sourced easily. It is cheap, it is environment- friendly, and can be used in homes and industry,” he says.
If Tamil Nadu cannot move fast on exploiting this resource, it will lose out as neighbouring States are well geared to exploit this cheap fuel. Globally, there is an excess supply anticipated for the next 10 years, he says.
Gujarat and the NCR have benefited immensely. Tamil Nadu prides itself on being a manufacturing State and it needs to “find a solution to ensure natural gas is the principal source of fuel for houses and industries,” he asserts.
The protests relating to hydrocarbon exploration and prospecting should not delay the Centre and the State government from sourcing natural gas elsewhere. It is the responsibility of the government to convince the stakeholders concerned.
While declining to comment on the ongoing protests against hydrocarbon exploration, he says: “All we can say is, it is absolutely vital to find a solution.” Tamil Nadu must convert from high-cost fuel such as furnace oil, and go to gas. It should not allow these controversies to delay the establishment of infrastructure for exploiting natural gas which can be sourced from anywhere. Locally available resources are not significant by global standards and it remains to be seen how cost effectively these can be tapped, he says.
S Ilanahai, President, Chemical Industries Association, and Vice-President, Manali Industrial Association, said every bit of local resource should be tapped as this would be half as costly as imported gas which could be about $7.5 per mmbtu.
But even at this rate imported natural gas is much cheaper than liquid fuel. Industry in Tamil Nadu needs natural gas whatever the source for manufacturing competitiveness. For example, power from natural gas will be less than ₹6 a unit while from diesel it will be ₹12.
The issue needs to be resolved fast and farmers need to be educated on the environment safety aspects. The Government has to bring together academic experts, industry and authorities to convince people about the need for such projects.
Another chief executive of a large unit in Chennai said the government has to find ways to convince all stakeholders concerned. It is entirely the government’s responsibility to handle the job of taking them along. The industry cannot be held to ransom, the executive said.