Chhatrapati Sambhajinagar Industries Face Shutdown Amid Severe LNG Supply Crisis
Chhatrapati Sambhajinagar Industries Face LNG Crisis, Risk Shutdown

Chhatrapati Sambhajinagar Industries Face Imminent Shutdown Due to Severe LNG Supply Disruption

Industries in Chhatrapati Sambhajinagar are teetering on the edge of widespread shutdowns over the next two to five days as a critical shortage of liquefied natural gas (LNG) supply cripples production across the city. The Chamber of Marathwada Industries and Agriculture (CMIA) has urgently appealed to the chief minister and central government for immediate intervention to avert an industrial catastrophe.

Unprecedented Crisis Hits Key Industrial Hub

According to CMIA president Utsav Machar, the city's approximately 4,500 industries are experiencing an unprecedented fuel crisis, with nearly 90% already reporting significant production disruptions. "Most LNG-dependent industries are facing a dire situation. Many have fuel reserves for only a couple of days, while others are desperately seeking alternatives to maintain operations," Machar stated. The industrial body has formally submitted representations to authorities and is seeking appointments to brief them on the gravity of the escalating emergency.

Industrialists reveal that shortages extend beyond LNG to include LPG, methanol, and pitching oil, creating a multi-faceted crisis affecting diverse sectors. The city's industries collectively require close to 240 metric tonnes of gas daily, and stakeholders fear that ongoing conflicts in West Asia have tightened global supply chains, potentially leading to prolonged shortages and volatile pricing.

Wide Pickt banner — collaborative shopping lists app for Telegram, phone mockup with grocery list

Specific Industry Impacts and Timelines

During a CMIA emergency meeting held on Tuesday to assess the situation, numerous entrepreneurs reported having just enough fuel to operate for a few more days. The crisis has already forced approximately ten micro and small units to halt production entirely.

  • Jay Gosar of Auric Green disclosed that his company produces over 450 CNG cylinders daily and requires 32-35 tonnes of gas. "We've been informed that supplies may be halted. While we can manage temporarily, continued disruption would compel us to shut operations, affecting 250 contract workers per shift," he explained.
  • Industrialist Atul Kulkarni reported that his plant uses about 2.6 tonnes of LPG daily for heating metal components. "Without resumed supply, we may need to suspend operations by Wednesday afternoon, impacting approximately 1,800 direct employees," Kulkarni warned.
  • Uday Randhale of the Sanjeev Auto Group indicated that their six units require nearly 30 tonnes of propane daily. "We face potential shutdown after March 14 if supply isn't restored. We also rely on around 4,000 litres of pitching oil daily, which is currently unavailable," Randhale added.

Broader Economic and Employment Consequences

The crisis threatens to paralyze vital sectors including automobile component manufacturing and pharmaceuticals, with temporary shutdowns becoming increasingly likely if supplies aren't urgently restored. Girish Kale of Exide Company noted they have fuel stock for only five more days, while methanol prices have surged from Rs 33.25 to Rs 44.25, forcing production scale-downs.

AK Sengupta of Nahar Engineering, which supplies components to major automotive brands like Bajaj, Honda, and TVS, warned that operations might halt by noon on March 12 without gas supply restoration. Suresh Todkar from the Devgiri Electronic Cluster confirmed that the shortage is severely hampering production across their operations.

Hotel Industry Also Raises Alarm

The hospitality sector is similarly vulnerable, with Harpreet Singh, president of a local hotel association, highlighting that the city's more than 450 hotels depend on consistent gas supply for daily operations. "While hotels haven't shut down yet, the situation could deteriorate within a day if shortages persist, threatening the livelihoods of numerous workers," Singh emphasized, underscoring the crisis's potential ripple effects beyond manufacturing.

As Chhatrapati Sambhajinagar's industrial ecosystem braces for potential collapse, stakeholders await urgent governmental action to stabilize fuel supplies and prevent widespread economic disruption affecting thousands of workers and critical supply chains.

Pickt after-article banner — collaborative shopping lists app with family illustration