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Textile processors annoyed over hike in gas price
Dec '10
Annoyed by the irregular supply of industrial gas and an abrupt rise in its prices, around 1,200 processors from South Gujarat have resolved not to ink a deal with a gas company. They have even forwarded a letter to the company seeking some clarifications regarding the sourcing and rates of gas.

The processors during a recent meeting of the South Gujarat Textile Processors Association (SGTPA) decided to request the company to remove the Restricted Supply Level (RSL) clause from the agreement. They demanded that, the company should stick to its previous commitment and provide them with 100 percent gas supply from RLNG and Panna Mukti Tapti (PMT) field.

The processors, while opposing the RSL agreement, said that they don't want to create a situation whereby the company would first raise the price and provide them with a major share of the quota, and then shrink the supply after a month but sustains the higher rates, as this greatly shoots up their fuel bill.

The company has declared that it would raise the gas rates by Rs 1.85 per cubic metre since December 1 and would also raise the gas supply by 62 percent of the quota decided. But the processors are apprehensive that the company would reduce the supply percentage and increase the prices after a month, leaving them with no other option but to purchase gas from open market at a higher rate. The company merely supplied 16 percent of the quota by charging Rs 11.50 per cubic meter of gas, until a month back.

Also that the company without providing any assurance for regular gas supply is adding new customers to its consumer base, and has even not fulfilled the agreement that it had entered into a year ago, whereby it promised to supply a specific quantity of gas.

Fibre2fashion News Desk-India

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