Out Of Gas & Out Of Time, Industry Warns Of Shutdown

Ludhiana: With the West Asian conflict causing upheaval in global energy supply, the manufacturing sector in Ludhiana is feeling the pinch. Concerned about dwindling LPG supply, leading industrial bodies have warned of imminent shutdown of MSME units if immediate corrective measures are not taken.

Industry representatives pointed out that ongoing geopolitical tensions in the Middle East have severely impacted global natural gas availability, leading to acute shortages across industrial clusters in India. The ripple effect is now being felt strongly in Ludhiana, a key manufacturing hub known for engineering goods, auto components, and metal-based industries.


The Chamber of Industrial & Commercial Undertakings (Cicu) has raised the issue with senior govt authorities, including the chief minister's office and Union minister of petroleum and natural gas, Hardeep Singh Puri, seeking urgent intervention to restore supplies. In its communication, Cicu stated that despite earlier representations, the situation has worsened significantly due to continuous disruptions in supply of industrial gases. The crisis, it said, has now reached a critical stage, pushing micro, small and medium enterprises (MSMEs) towards closure.

Cicu president Upkar Singh Ahuja termed the situation as extremely serious and alarming, warning that many units are already operating at minimal capacity while several others are on the verge of shutting down.

He said that industrial gases, including LPG, are not optional, but a lifeline for manufacturing. If immediate steps are not taken, MSME units will be forced to shut down in the days to come, he warned, urging the govt to ensure a dedicated and uninterrupted supply of gas to industries. He said that MSMEs form the backbone of the economy and are a major source of employment. "Any disruption at this level will have a cascade impact on jobs, exports and overall industrial growth. A minimum assured allocation is the need of the hour," Ahuja added.

A delegation of the Federation of Industrial & Commercial Organisations (Fico) also met deputy commissioner Himanshu Jain and submitted a memorandum highlighting the shortage of LPG for industrial use and canteens.

According to Fico, the govt has prioritised LPG supply for domestic consumers, hospitals and defence sectors, leaving industries grappling with acute shortages. Industry members highlighted that most manufacturing units operate on a "just-in-time" system and do not maintain large reserves of fuel, making them particularly vulnerable to supply disruptions. As a result, many units are scaling down or halting operations.

Heat treatment, forging, cycle parts and hosiery units that rely on LPG as a cleaner fuel have either stopped or significantly reduced production over the past five days. Additionally, industrial canteens are struggling to provide meals to workers due to the non-availability of LPG cylinders, they said.

Fico president Gurmeet Singh Kular said uninterrupted industrial activity is essential to keep the economic cycle moving. He warned that if industrial units close down, employment will suffer.

The delegation warned that if the situation persists, it could severely impact not only production but also the livelihoods of thousands of workers dependent on these industries.

To address the crisis, Fico has demanded that a limited supply of 422-kg industrial LPG cylinders be permitted to ensure continuity of operations, while allowing 19kg LPG cylinders for industrial canteens. They suggested that a buffer stock of at least 10% be maintained to meet critical requirements.

Global crisis, local effects

-- Geopolitical tensions in West Asia have disrupted global natural gas availability

-- Reduced gas supply has led to an acute LPG shortage in industrial clusters, including Ludhiana

-- Manufacturing units following "just-in-time" systems are unable to maintain fuel reserves, making them vulnerable

-- Many units in heat treatment, forging, cycle parts and hosiery sectors have scaled down or halted production over the past five days

-- Industrial canteens are struggling to provide meals due to non-availability of LPG cylinders

-- Several MSME units are operating at minimal capacity, while others are on the verge of shutdown

-- Industrial bodies warn that prolonged shortages will severely impact production, jobs, exports and overall industrial growth

Suggestions Offered

-- Govt should ensure dedicated and uninterrupted supply of LPG and industrial gases to manufacturing units

-- Minimum assured allocation of gas sought to prevent shutdown of MSMEs

--Permission requested for limited supply of 422-kg industrial LPG cylinders to maintain production

--LPG cylinders of 19kg requested for use in industrial canteens to ensure meal services for workers

--Industry bodies urge creation of a buffer stock of at least 10% to handle critical shortages