Gujarat Industries Maintain Operations Despite West Asia Fuel Supply Crisis
The Gujarat state government has announced that the industrial sector in the state continues to remain largely functional, even as the ongoing crisis in West Asia hampers fuel supply. Officials emphasized that operations are proceeding, albeit at a reduced capacity for many units.
Gas Availability Confirmed Amidst Global Turmoil
In a media briefing on Tuesday, additional industries commissioner K C Sampat and Gujarat State Petroleum Corporation senior vice-president Dipen Chauhan asserted that gas is "fully available in the state". They detailed that the government is closely monitoring the situation and coordinating with multiple agencies to minimize any potential disruptions.
Sampat revealed that the government has checked the status of over 4.11 lakh industrial units across Gujarat. Of these, only 1,212 industries are currently non-operational, while approximately 28,517 are functioning at reduced capacity. He clarified that the non-operational units are facing viability challenges primarily due to transportation and supply chain issues, rather than any shortage of fuel.
Morbi Ceramic Cluster: Viability Issues, Not Gas Shortages
Focusing on the Morbi ceramic manufacturing cluster, Sampat explained that gas availability is not the reason behind the closure of units. Out of 2,561 ceramic units in the district, 984 are currently non-operational, with some possibly having shut down even before the crisis began.
"Ceramic units in Morbi are not shut due to gas shortage. It is because of viability issues, pricing pressures, and lack of export demand. It is an issue about viability, not availability," Sampat stated. He added that 1,577 units in Morbi are operating at reduced capacity.
Market Dynamics and Export Challenges Impact Operations
GSPC senior vice-president Dipen Chauhan reinforced that industrial gas supply has not been curtailed anywhere in Gujarat so far. "Gas is fully available. The issue is not availability but market dynamics affecting pricing and demand," he said.
Chauhan highlighted that 70% of Morbi's ceramic industry production is intended for overseas markets. Disruptions in shipping routes, along with rising freight and insurance costs, have significantly impacted operations. He noted that the Morbi industry association is expected to resume gas offtake by the end of April or early next month, even as gas supply to Morbi industries has dropped sharply from 30-35 lakh cubic metres per day before the crisis to about 4.5 lakh cubic metres now.
Government Coordination and Priority Sectors
The state government is in constant coordination with the Centre regarding issues related to fuel supply, logistics, and regulatory support. Priority has been accorded to key sectors such as:
- Steel
- Automobiles
- Textiles
- Dyes
- Chemicals
- Plastics
Officials confirmed that there has been no disruption in supply to priority segments, including domestic PNG and CNG, which serve around 37 lakh households and the transport sector in Gujarat.
