Iran war costs Ambernath & Dombivli industrial units Rs 1,000 crore in 1 month

AMBERNATH: Industrial units in the MIDC belts of Ambernath and Dombivli are incurring losses exceeding Rs 1,000 crore per month cumulatively as the West Asia conflict disrupts gas supply and raw material availability, severely affecting production. Nearly 50% of companies at Anand Nagar MIDC and 30% in Dombivli MIDC have been impacted due to shortages of chemicals, PNG and other essential inputs. The crisis has also triggered worker migration, further worsening the situation, industry representatives said.

The Ambernath MIDC region houses around 2,000 companies, including nearly 400 chemical units. The Additional Ambernath MIDC area alone has 1,400 companies. Together, these industrial belts provide employment to over one lakh families. Officials said the conflict's effect has been particularly felt by engineering, chemical, textile, confectionery and pharmaceutical units. PNG is crucial for these units. Umesh Tayade, president of the Additional Ambernath Manufacturers Association (AAMA), said PNG supply has been reduced by 50%. "Units are being forced to either cut production or procure additional gas at almost double the cost," he said.




Also, several industrial canteens have shut due to a lack of commercial LPG supply, while rising food prices at local eateries have made daily meals unaffordable. A large number of workers, particularly from UP and Bihar, rely on commercial gas for cooking. Due to shortages and rising costs, 20-25% of the workforce has returned to their native places. As a result, many companies have reported a 40-50% drop in output. Investment activity in the MIDC region has slowed, leaving entrepreneurs struggling to sustain operations.

The industry body AAMA has written to the state government seeking relief measures, including subsidies, reduced loan interest rates, a six-month extension for GST payments, and easier access to diesel for industrial use. Tayade said, "There is no clarity on how long the conflict will continue. Industrial units in Ambernath alone have suffered total losses of over Rs 500 crore. In such a situation, govt support and relaxations are essential for our survival."

Kalyan-Ambernath Manufacturers Association president Deven Soni said efforts are being made to ensure food for workers. Prashant Ghorpade, vice-president of the association, said rising input costs - particularly for chemicals - have increased production costs, leading to a drop of nearly 30% in output in Dombivli MIDCs which he said have suffered over Rs 500 crore in total losses.