Rolling mills cite Iran crisis, gas supply curbs to oppose forced PNG shift

Chandigarh: Citing disruption in gas supplies due to the ongoing Iran crisis and instability in LNG imports, rolling mills have informed the National Green Tribunal that forcing them to shift exclusively to PNG, without assured supply, complete pipeline connectivity and viable pricing, could disrupt industrial operations and push MSME units into deeper financial distress.Rolling mills have sought permission to use alternate fuels, including low-sulphur coal, high-temperature coal gasifiers, biomass fuel, wood pellets and other approved alternate fuels, subject to compliance with emission standards, operation of APCDs and other safeguards.The tribunal is hearing a complaint regarding air quality violations by coal-fired furnaces associated with industries such as recycled steel production, ceramics and refractories, cupola furnaces and rolling mills.The All India Steel Rollers Association, representing rolling mills in Khanna and Mandi Gobindgarh, told the tribunal that the issue could not be viewed merely as a question of fuel use by rolling mills. It submitted that air pollution concerns in Khanna were "multi-factorial", involving road dust, vehicular emissions, highway traffic, construction activity and other non-industrial sources, apart from industrial emissions.The association argued that the proposed transition to PNG was always dependent on adequate infrastructure, continuous and sufficient supply, techno-economic feasibility and sustainable commercial conditions. It claimed all these factors presently remained uncertain and unstable.It said shortages and disruptions in PNG supply had been acknowledged through communications issued by gas suppliers to industrial consumers regarding curtailment and restricted supply. The association also cited the Central Pollution Control Board, saying the CPCB had recognised extraordinary situations arising from shortage and disruption in approved cleaner fuels and had permitted temporary use of alternate fuels in appropriate circumstances.The association further submitted that even the Govt of India had acknowledged the vulnerability caused by excessive dependence on imported LNG and natural gas, particularly in view of geopolitical disturbances and international supply-chain disruptions affecting availability and pricing. It said the Centre's promotion of coal gasification projects was aimed at reducing dependence on imported LNG and natural gas and shielding domestic industries from global supply volatility.The association asserted that rolling mills remained compliant with the applicable environmental framework and had installed Air Pollution Control Devices, maintained prescribed stack heights and undergone regular monitoring of stack emissions under the supervision of the Punjab Pollution Control Board. Despite this, it said, the industry was facing coercive pressure for compulsory PNG transition, even though infrastructure, commercial and supply-side constraints were beyond the control of industrial units.Referring to gas supply communications, the association said Think Gas Ludhiana Pvt Ltd, in a communication dated March 3, 2026, acknowledged that the ongoing geopolitical crisis in Iran and the wider Gulf region had affected LNG supplies from the Middle East, particularly through the Strait of Hormuz. This, it said, resulted in a reduction of around 20% of global LNG supplies and nearly 50% of India's LNG imports.The association said Think Gas had also received supply curtailment notices from upstream RLNG/LNG suppliers and warned industrial consumers about possible restrictions in gas supply, while advising customers with dual-fuel facilities to explore alternate fuels to meet contingencies. It further said the situation worsened when, through an email dated March 6, 2026, the company informed consumers that upstream suppliers had invoked force majeure under gas supply contracts and that supplies would be regulated without upward flexibility.Thereafter, through a communication dated March 11, 2026, it was informed that pursuant to directions issued by the Govt of India under the Essential Commodities Act, gas supplies to industrial consumers would be restricted to only 80% of average consumption levels, the association said.Referring to a Cabinet Sub-Committee meeting held on May 7, 2026, under the chairmanship of Punjab's minister of industries and commerce, the association said it had placed before the panel the ground realities affecting compulsory transition to PNG, including international conflict affecting gas supplies, insufficiency and uncertainty of PNG supply, volatile pricing, high capital investment for furnace conversion and the financial burden on MSME industries.The association has prayed that any direction for compulsory and exclusive transition to PNG or CNG should not be enforced in the absence of complete infrastructure, uninterrupted and adequate supply, transparent and commercially viable pricing, and consideration of techno-economic and legal feasibility under Punjab's Fuel Policy dated Oct 4, 2023.The association further requested that MoEF&CC, CPCB, NHAI, municipal authorities and the Public Works Department be impleaded as necessary parties, citing the role of road dust and vehicular pollution in ambient air pollution in the area.