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Morbi ceramic units to get 20% less gas supply
ET Realty  |  April 22, 2019

TNN Ahmedabad

Effective from April 18, the move is aimed at addressing the issue of low pressure and ensuring equitable supply of natural gas to all ceramic units in Morbi.

 

Each ceramic tile making unit in Morbi that uses natural gas as fuel will now receive 20% less supply. Gujarat Gas Ltd (GGL) has decided to temporarily ration gas supply of tiles-making plants in India's largest ceramic industry cluster. Effective from April 18, the move is aimed at addressing the issue of low pressure and ensuring equitable supply of natural gas to all ceramic units in Morbi.

 

There has been a sudden spurt in demand of natural gas with hundreds of plants switching over to gas from coal-gasifiers following the National Green Tribunal (NGT) order to shut down units running on coal-gasifiers in Morbi.

 

According to industry players, natural gas requirement of units in Morbi has increased to 65-68 lakh cubic metre per day. With its current gas distribution infrastructure, GGL is able to provide 42-43 lakh cubic metre of gas every day without any hiccups.

 

The spurt in demand created problems of low pressure at several tiles-making units, while 240 plants, that mainly produce wall tiles have had to shut due to issues related to gas supply. Given the infrastructural constraints, the reduction is meant for providing gas supply equitably to all the units, including the closed ones.

 

The reduction will make gas available to closed units, which are likely to resume operations from April 21. However, they, too, will be given 20% less gas, said an industry player.

 

Meanwhile, GGL is ramping up its infrastructure in the region and has already started laying of a pipeline on a war footing from the nearest transmission terminal at Gala village. The work is expected to be completed in less than a month's time.

 

Industry players also expressed hope that the laying of the pipeline would be over within a month. They, however, are concerned about the possible loss in production due to less supply of gas. "Reduction in gas supply will ultimately result into 20% loss in production apart from raising our cost. In the event of financial losses, who will compensate us?" asked Nilesh Jetpariya, president, Wall Tiles Division, Morbi Ceramics Association (MCA).