Gujarat Gas lowers supply to Surat textile units

In the wake of lower supply from its supplier company, Gujarat Gas has curtailed the supply of gas to textile units in Surat. The company has cut the supply to 66 per cent of the daily contracted quantity (DCQ).

“The gas supply by Gas Authority of India (GAIL) to Gujarat Gas has been brought down to around 40 per cent,” said sources. Gujarat Gas gets 2.1 million cubic meter of gas from Gas Authority of India (GAIL).

Earlier, Gujarat Gas had reduced the supplies to 72 per cent of DCQ in February. “Due to further reduction in the supply from our gas supplier(s), gas supply to your unit is reduced ...under the GSA (Gas Supply Agreement) with effect from 9 March 2009 to 66 per cent of the DCQ till further notice,” reads a letter sent by Gujarat Gas to a textile unit, which buys gas from the company.

Over 300 textile units have been adversely impacted by the decision. The company has an agreement with these units to supply 8 lakh cubic meter gas every day. “At present, only 66 per cent of the contracted quantity is being supplied,” said the owner of a textile unit in Surat.

“In case where gas supply in excess of 66 per cent is required, the units have been asked to pay Rs 25 per cubic meter gas. At present, the textile units are charged Rs 11.50 per cubic meter gas. In a way, the company has doubled the prices of gas,” said Pramod Chaudhary, president of South Gujarat Textile Processors’ Association.

Gujarat Gas’ move to curtail gas supplies has already upset textile units. “If we don’t get required gas, many units will have to be closed down. We stand to incur huge financial losses and things will further worsen as the textile industry is passing through a tough time,” said the owner of a textile unit.

Source: business-standard