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Surat textile units to get continuous gas supply
27
Aug '11
Textile processing units in Surat, the country's biggest hub for man-made textile fibres, will get continuous supply of natural gas.

In view of the Gas Sales Agreement (GSA), which is to become effective from September 1, the Gujarat Gas Company Limited (GGCL) has increased the Restricted Supply Level (RSL) of natural gas to 100 percent for around 440 textile units in the city.

GGCL has also increased the basic gas price to Rs. 19.30 per standard cubic metre (SCM) from the current Rs. 16.64 per SCM. Even after this increase, the price per SCM in Surat will remain lowest, as the price in other cities like Ahmedabad, New Delhi, and Vadodara range from Rs. 21.50 to Rs. 25.91 per SCM.

After the reduction in supply from the Panna-Mukta-Tapti (PMT) fields, there is a rise of the re-gassified liquefied natural gas (RLNG) in GGCL's portfolio, which will enable it to ensure uninterrupted supply without any cuts to textile units.

The daily natural gas requirement of 440 textile units is estimated to be between 1.5 and 1.6 million metric standard cubic metre per day (MMSCMD). So far, the units were supplied RSL at 80 percent, and were required to buy the remaining gas from spot market by paying higher price.

Besides continuous gas supply, GGCL will also provide some other benefits to its textile processing customers. These include the fixing of average gas price, relief in the minimum guarantee off-take, and acceptance of bank guarantee for incremental security deposit.

Fibre2fashion News Desk - India

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