India - Textile Processors To Urge GGCL To Reconsider Revision In Gas Price
Dated- 24 Jun , 2012 - India
Following the increase in the price of the natural gas supplied to the industries in south Gujarat, especially to the textile processing units in Surat, the South Gujarat Textile Processors Association (SGTPA) has decided to urge the top management of the Gujarat Gas Company Limited (GGCL) to reconsider the price revision in the larger interest of the city's ailing textile sector.
Industry sources said that the Gujarat Gas Company Limited (GGCL), which supplies gas to about 400 dyeing and printing mills in Surat, has issued a circular regarding the 9.6 per cent price hike effective from July 1. Now, the textile processors and all other industrial users in south Gujarat will have to pay Rs 29 per standard cubic meter (SCM) of gas.
More than 400 dyeing and printing mills in Surat are running on natural gas and that the daily requirement of natural gas is pegged between 1.5-1.6 million metric standard cubic meter per day (mmscmd).
"Our units have been running on natural gas for a long time. The textile processors have invested heavily in converting their units to gas-based. However, we have no other alternative but to use gas as fuel. If the constant price revision will continue in future, then many would shut shops or be forced to switch to alternative fuels like coal" said a leader of SGTPA.
Industry sources said the textile industry is passing through a tough phase following the rise in the yarn prices, low demand from the key centres, shortage of workers etc. Now, the increase in gas price will put extra burden on the units which are already ailing.
Vishal Budhia, chairman of SGTPA's gas committee said "We will be meeting the higher authorities in GGCL to urge them to reconsider the price revision from July 1."