SGTPA campaigns against gas price hike

SURAT: Gujarat Gas Company Limited (GGCL)'s announcement of increase in the industrial gas prices in Surat, Ankleshwar and Bharuch from January 1, 2012, has not gone down well with the textile processors in the country's biggest man-made textile hub.
The South Gujarat Textile Processors Association (SGTPA) has decided to launch a campaign seeking support from the CNG, industrial, domestic and commercial users against the company's alleged illegitimate price rise.
The SGTPA office-bearers have exhorted the domestic, CNG and commercial users in the diamond city to come forward and join the campaign. The Southern Gujarat Chamber of Commerce and Industry (SGhas been roped in to support the campaign.
After increasing the CNG price by Rs.3.65 per kilogram last week, the GGCL issued letters to the industrial users including textile processors, chemical units and other industrial units in the city regarding the price rise of Rs 4.077 per standard cubic meter (scm) of natural gas.
If the textile processors said the company has increased gas price in the industrial segment by 108 per cent in 2011, thereby eroding the profits and increasing the production cost of the textile entrepreneurs.
"Over the last few years, the textile process houses have invested Rs 500 crore, borrowed from the banking institutions, for switching over to natural gas from coal-based production. Now, it is not possible for the textile processors to again switch over to coal due to the requirement of heavy investment. tnn
However, the company is taking the advantage of its monopoly in the market and increasing the gas price" said Pramod Chaudhary, chairman of SGTPA, told media persons on Thursday.
"The latest price rise by the company will put a big question mark on the survival of the textile industry in the city. For the survival, we will have to increase the job charges by almost 15 to 20 per cent," he said.
Rohit Mehta, president, SGCCI said "It is a serious issue concerning the textile processing units and we are ready to take it up with the higher authorities at Gujarat gas company. An open house discussion should be held between the company and the representatives from CNG, domestic, industrial and commercial users over the price rise."