SURAT: Raised cut in the gas supply has affected all hopes of the textile sector for moving back to track specifically before the start of marriage season. Relief was expected by the industry in the volume of gas supply but opposing the RSL, restricted supply level of some 86%, which has been reduced to 65% by the gas companies during the month of April.
It appears as if the central government is not concerned about the prevailing situation relating to raised cut in RSL that can have long lasting effects. At least 35% gas will now have to be purchased on market a rate which was 14% earlier. This percentage is higher by 40% of RSL value of SGTPA, South Gujarat Textile Processors Association, said Pramod Chaudhary.
Current price at which the industry is contracted for gas provision is Rs. 11.50 per cu.mtr as against the market prices which are Rs. 15.32 per cu.mtr.
Assurance was provided by the central government what gas supply will be given to the textile industry up to 0.6 million metric cu.mtr on daily basis (MMSCMD). But now it’s being clarified that only fall back gas will be give, that means that if something will be left after being supplied to others, then the industry will be given. Scenario has been changed due to this and so nothing is left for us, said Chaudhary.
During this time, sources of gas and oil ministry said that short supply is being suffered by Gujarat Gas Company since April 2008. Up to 30% shortage is there and situation is still not getting improved. This situation has not left them with any other options that to continue with cuts.
Meeting of the petroleum ministry to be held within this month is the only hope left with the textile ministry. Sources from the industry said that re-allotment issue will be taken up after the re-checking of quota allocation. This would be after this meeting that the KG Basic will get cleat and the textile industry of the city will be bearing the cut in supply.
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