Help us, PM: Cut in gas supply hits SSIs, says industry body

**Ahmedabad:**Industry body Assocham has soughtthe intervention of Prime Minister Narendra Modi in the matterof a sharp cut in natural gas supplies to small industries insouth Gujarat, which has forced them to curtail production.
“Several of them are involved in exports of glass andceramic products to western markets. They were set up here atthe invitation of the government to utilise low pressure gasfrom isolated fields,” said a letter sent yesterday byAssocham Secretary General D S Rawat, seeking Prime Minister’sintervention.

It claimed that the action by Gas Authority of India Ltd(GAIL) to cut supply of APM gas by 58 per cent to 33 units hasput 30,000 direct and 1.2 lakh indirect jobs at stake, sincenon-availability of gas is forcing these units to shut shop. A 58 per cent reduction in gas supply has been in effectsince September this year, affecting these 33 manufacturingunits in the region.

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Based on Petroleum and Natural Gas Regulatory Board(PNGRB) guidelines, GAIL took the decision to curtail APM gassupplies to these units to meet demands of CNG consumers.

In its letter, Assocham also stated that the decisionto cut the supply of cheap APM gas by 58 per cent to theseunits, is contrary to the spirit of the PM’s ‘Make In India’programme.

“While on one hand the government is committed toincrease jobs and get foreign investment, on the other hand,the decision to cut gas supply impacts the viability of unitscontributing to the nation,” the letter said.
The South Gujarat Small Gas Consumers’ Association(SGSGCA) has been raising this issue at different fora eversince GAIL imposed the cut.

Assocham claimed that the 33 units consume only 1 percent of the total APM gas allocation of 60 million metricstandard cubic meters per day (MMSCMD). Thus, if there is ashortage of gas and a cut in supply is inevitable, Assochamsuggested “a uniform cut of 0.5 per cent across the board” onthe total domestic gas supply of 60 MMSCMD. “Alternatively, the cut should be implemented first inthe non-priority sector represented by steel, petrochemicals,and refineries,” Assocham’s letter said.

PTI