Diesel Shortage Threatens Operations in Baddi-Barotiwala-Nalagarh Industrial Cluster
Continuous process industries in the Baddi-Barotiwala-Nalagarh (BBN) industrial cluster have raised serious concerns over the unavailability of diesel for operating generator sets during power outages, warning that the situation could disrupt manufacturing and impact export commitments.
Industry Warnings on Production Losses
Industry representatives recently flagged the issue before the district administration, stating that frequent power tripping in the industrial belt makes diesel-powered generators essential for maintaining uninterrupted operations. Any halt in production not only damages equipment but also leads to wastage of partially processed material.
New Fuel Supply Regulations
The issue stems from the Ministry of Petroleum and Natural Gas’ Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, which came into effect on June 12. The order prohibits the dispensing of diesel in loose bottles or unapproved containers and bars industrial and commercial consumers from procuring fuel through retail outlets. Such consumers are now required to source fuel through designated consumer pumps.
Following the directive, several retail outlets have stopped supplying diesel to industries, leaving many units struggling to secure fuel for generator sets during power outages.
Government Response
Deputy Commissioner Solan Manmohan Sharma acknowledged the industry’s concerns and said the matter had been conveyed to the state government. However, he noted that since the order had been issued by the Centre, the state’s role was limited.
Daily Diesel Demand Data
According to data submitted by 32 industries across sectors including pharmaceuticals, food processing, textiles, engineering goods, fast-moving consumer goods and footwear manufacturing, the daily diesel requirement stands at 22,740 litres, translating into a monthly demand of 6.82 lakh litres.
Industrial demand varies significantly, ranging from 15 litres per day for some units to as much as 2,400 litres for others. Major users include manufacturers of high-efficiency photovoltaic solar cells, pharmaceuticals and food products such as ice cream.
Industry Association Concerns
Expressing concern over the situation, BBN Industries Association president YS Guleria said the restrictions had created operational challenges for industries dependent on diesel generators.
“Consumer pumps have stopped supplying diesel and petrol to industries, making it difficult to operate generator sets during power outages,” he said.
Guleria warned that continuous process industries, which cannot afford prolonged production interruptions, may be forced to consider temporary closures if the issue remains unresolved.
“This will not only affect manufacturing but could also impact export orders as companies may struggle to meet delivery deadlines,” he said, urging the administration to facilitate fuel availability for industries through the Food and Civil Supplies Department.
