PNG supply to industries cut further to 55%, output risks mount

Indore: Piped natural gas (PNG) supplies to industries have been further curtailed to 55 percent of their average consumption, raising concern among manufacturing units across Indore, Pithampur and other industrial belts about potential production disruptions and rising operating costs.The latest restriction, effective from March 26, follows an earlier cut that limited supplies to 65 percent, tightening fuel availability for industrial and commercial consumers. The curbs have been imposed after liquefied natural gas shipments were disrupted due to the ongoing West Asia crisis, prompting suppliers to invoke force majeure.Industry representatives said the reduction in gas availability could hamper production schedules and force units to scale down operations, particularly in sectors where PNG is a primary fuel for manufacturing processes. Pithampur Audyogik Sangathan president Gautam Kothari said the continued curbs are creating uncertainty for industries that depend on gas for regular operations."With PNG supplies now restricted to 55 percent, several units may face difficulties maintaining normal production levels. Industries that rely heavily on gas will have to either reduce output or shift to alternate fuels, which will significantly increase production costs," Kothari said.Industrialists said units consuming gas beyond the restricted quota may have to purchase spot regasified liquefied natural gas which could cost over Rs 130 per standard cubic metre plus taxes, making it expensive for many manufacturing units.Yogesh Mehta, of Association of Industries Madhya Pradesh (AIMP) said the restriction will affect production planning in several sectors."The reduction in gas supply will directly impact industrial operations. Many manufacturing processes are designed around gas-based systems, and sudden supply cuts make it difficult to maintain consistent production," Mehta said.Industry bodies said sectors such as engineering goods, pharmaceuticals, packaging and food processing could face operational challenges if the curbs continue for an extended period.They added that prolonged supply restrictions could lead to lower output, higher fuel costs and delays in production schedules, particularly for MSME units operating in industrial clusters such as Pithampur, Sanwer Road and Mandideep.