Gas supply curbs push industries to seek 7-day billing, lower deposit model

Indore: With piped natural gas (PNG) supply to industries capped at around 55 percent of their average consumption, industrial production in the region is under strain, prompting MSMEs to push for a shorter billing cycle and lower deposit requirements to manage cash flows.Industry bodies said that restricted gas supply, rising prices and delays in new connections are affecting production cycles across units dependent on gas, forcing many to operate below capacity.During a recent meeting with Avantika Gas Ltd officials, a delegation of industries said that uncertainty in gas supply and advance payment requirements were putting pressure on working capital. They demanded that gas be supplied on a weekly advance payment basis linked to actual consumption to ease financial stress.MSME representatives said that the demand for a shorter billing cycle stemmed from the high upfront financial burden under the existing system. At present, industries are required to maintain around one month's security deposit with the company, which has become significantly higher due to the sharp rise in PNG prices."Supply restrictions are directly affecting production planning, and industries are under pressure. The weekly payment system will help in better cash flow management in the current scenario," Association of Industries Madhya Pradesh president, Yogesh Mehta, said.Industry players said that MSMEs have proposed that instead of a one-month deposit, the company should take a seven-day advance deposit based on average consumption and generate bills on a weekly basis. This, they said, would reduce the capital locked with the gas distributor and help units manage liquidity more efficiently."Gas supply cuts have already affected output in several units. A seven-day billing and deposit cycle will ease financial burden and allow industries to align payments with actual consumption," said Tarun Vyas, industrialist.Industry representatives also raised concerns over delays in new gas connections and the burden of security deposits. Company officials said that there were operational challenges in providing new connections, but efforts were being made to expedite the process.Industry players said that unless supply stabilises, production across several sectors could remain under pressure, with some units already exploring alternative fuels or scaling down operations.