Home / Knowledge / News / Textiles / Surat textile processors seek rollback of gas price hike
Surat textile processors seek rollback of gas price hike
29
Jun '12
Textile processors from Surat are seeking a revision in the price of the natural gas supplied to them by the Gujarat Gas Company Limited (GGCL) and are expecting that their case would be heard by the Competition Commission of India (CCI) next week.
 
GGCL has issued a notice to textile dyeing and printing mills in Surat regarding the 9.6 percent increase in price of natural gas from July 1, 2012. It will mean that textile processors in south Gujarat will end up paying Rs. 29 per standard cubic metre of gas after the new price becomes effective.
 
There are over 400 textile dyeing and printing units in Surat and many of them use natural gas as a fuel. Their daily demand is estimated to be around 1.5-1.6 million metric standard cubic metre per day (mmscmd).
 
Mr. Vishal Budhia, Chairman of South Gujarat Textile Processors Association’s (SGTPA’s ) Gas Committee, told fibre2fashion, “Last time, the natural gas price was raised by 7.5 percent and the price has risen by nearly 200 percent in the last 18 months, which is unbearable.”
 
“We approached the Competition Commission of India (CCI), but our complaint against GGCL was rejected. Then, we went to Appellant Tribunal against the CCI and they have given a notice to the CCI that our case should be heard,” informs Mr. Budhia.
 
“We are expecting the next hearing in the coming week. It is the only hope that we have because the last judgment that was given by the Petroleum and Natural Gas Regulatory Board (PNGRB) was rejected by the Hon’ble High Court saying that the PNGRB has no power to rule over prices. So, it becomes very clear that going to PNGRB will not make any sense,” he adds.
 
Elucidating about the impact of hike in gas price on Surat textile processors, he says, “Around six months ago, there were around 250 textile processing units in Surat that were using gas. Out of these 250 units, 30 units have been closed by now. Textile processing units that use gas are the most affected and their margins have been badly hurt.”
 
“Many processing units are shifting from gas to thermopak, which entails a conversion cost of at least Rs. 10-15 million per unit,” he reveals.
 
“We are expecting that the CCI will constitute an Enquiry Commission, which will very clearly find that the GGCL has been manipulating prices to increase its profits,” he opines.
 

Fibre2fashion News Desk - India


Must ReadView All

GMAC urges Cambodia to push fabric-forward rule in RCEP

Apparel/Garments | On 17th Oct 2017

GMAC urges Cambodia to push fabric-forward rule in RCEP

Representatives from the Garment Manufacturers Association of...

Alibaba to invest $15 billion in DAMO Academy for research

Textiles | On 17th Oct 2017

Alibaba to invest $15 billion in DAMO Academy for research

Alibaba will invest $15 billion over the next several years in its...

Pressure on  Indian textiles exporters to ease by Q3: ICRA

Textiles | On 17th Oct 2017

Pressure on Indian textiles exporters to ease by Q3: ICRA

Pressures on the profit and debt levels of textiles exporters is...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search