Surat textile sector hit by further cut in gas supplies

19 Apr '10

2 min read

Gujarat Gas Company, the gas utility supplier to the textile hub of Surat in Gujarat, has further cut the supply of gas, to the shock of the textile yarn and fabric manufacturing sector in the city. Contrary to expectations of the industry of providing relief in gas supply, the utility service has further reduced the gas supply from supply level of 86 percent, to 65 percent for the month of April.

According to Mr Pramod Chaudhary, President of South Gujarat Textile Processors Association (SGTPA), who spoke to fibre2fashion, “This decision is in complete contrast to the assurances given by the Central Government to provide gas supply under priority basis and to cover the units which consume 50,000 cubic metres or less per day under SSI sector.

“Additional allocation of about 1 mmscmd gas was also supposed to be made to the small and medium scale sectors, so as to cover the needs of units using 50,000 cubic metres or less, along with which the Government had also promised to allocate 0.6 mmscmd of Reliance's KG D6 field gas to Gujarat Gas Co.

“But now to our utter surprise, the government has clarified that Surat textile sector will only get fall-back gas, which means that, Gujarat Gas Co. will get supplies only after, there is gas left to spare from the pool”, he concluded by saying.

When asked as to how much, the reduction in quantity of gas supply will affect the Surat textile industry, he replied by saying, “Over 400 textile fabric processing units will severely be affected, due to the reduction of 35 to 40 percent of supply by Gujarat Gas and will directly affect the operation and production of these units, rendering more than 800,000 workers jobless.”

He concluded on an optimistic note by saying that, they were still hopeful of getting the full quantity, if they continuously persuade and follow it up properly with the Petroleum Ministry.

Fibre2fashion News Desk - India

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