SGSGCA petitions government to intervene in the 58% supply cut of APM Gas

AHMEDABAD: At the interactive meet held in connection with Vibrant Gujarat 2015, the South Gujarat Small Gas Consumer Association petitioned the Chief Minister of Gujarat Anandiben Patel and the Industries Minister Saurabh Patel seeking their intervention with the Ministry of Petroleum and Natural Gas and GAIL in connection with a 58% cut in the supply of APM Gas.Most of the 33 industrial units are in the power intensive glass and ceramic manufacturing and have been located in the remote regions of Gujarat historically due to the availability of APM Gas. This cut has put on stake the livelihood of 30,000 direct and about 1,20,000 indirect workers employed in these units. Some of the companies have already shut part of their production.
The South Gujarat Industries consume only 0.5 MMSCMD of gas as against a total allocation of 60 MMSCMD of APM Gas. If applied equitably across all consumers of APM Gas then the cut would be just 0.5% across the consumers. Keeping aside the gas for the priority sector, an equitable cut across the balance consumers would be 4% to 5%.
Most of the South Gujarat industries were established during the era when there were no takers for natural gas in the isolated fields of Gujarat and it was being flared. They set up units in the remote and difficult areas with the assurance of low price gas as a source of energy. Many of these units are involved in exports. These energy intensive industries cannot afford to replace the APM Gas with the commercial gas as it is priced four times higher. This would make the units unviable.
Dr Swati Piramal who is leading the Industry's petition said, "We are hopeful that a solution would be found quickly so that our production, exports and employment are not affected."