Textile units in Surat shut as gas supply stops

23 Jan '14

2 min read

Around 150 textile and chemical units in the Indian textile hub of Surat have stopped operating as the Gujarat Gas Company Ltd. (GGCL), a subsidiary of the Gujarat State Petroleum Corporation Ltd., has stopped supplying industrial gas to these units, IBN Live reported quoting PTI.

GGCL served a notice to the textile and chemical processing units on January 14, 2014, informing about the industrial gas supply cut for a ten-day period from January 21 to 31, due to supply issues from the international market, according to the South Gujarat Textile Processors’ Association (SGTPA).

Gas supply is being diverted to the US and Europe, due to a rise in demand there owing to severe cold in those countries. Hence, gas is not available in spot markets, which has resulted in stoppage of gas to non-essential industries like textiles and chemicals, the report said.

The SGTPA said the stoppage of gas supply disrupts the entire chain of production, distribution and supply.

At present, the textile city of Surat produces around 15 million metres of polyester fabric a day, and hence, the 10-day stoppage of gas supply would result in a loss of around Rs. 400 million, SGTPA president Jitendra Vakharia said.

In the past, there have been instances of shortage of gas supply, but this is the first time that the gas supply has been completely stopped, Mr. Vakharia added.

Fibre2fashion News Desk - India

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