In a bid to reduce production cost which has gone up due to the rise in gas prices, Morbi-based ceramic manufacturers have now started switching over to coal gas fired furnace from the existing gas-based furnaces.
This move by many of the industry players comes after the increase in gas prices by the natural gas provider in the region Gujarat State Petroleum Corporation (GSPC) last November. The price of gas to the industry which falls under the commercial segment is ruling at Rs 37.40 per standard cubic meter (SCM)
“Higher price of gas has forced the ceramic players to shift from gas furnace to coal gas fired furnaces. We have no choice but to change our furnace as it decrease our fuel cost significantly,” said Tulsi Patel, president of Morbi–Dhuva Glaze Tiles Association.
Patel said that over 65 ceramic manufacturers have switched to coal gas furnaces and more players were planning in the same direction. “Though the changing to coal gas furnace is a costly affair, in order to reduce the fuel and production cost it has become a necessity," Patel said, adding that the change over could cost between Rs 1-1.5 crore per furnace. Veljibhai Patel, past president of Morbi–Dhuva Glaze Tiles Association said, “Use of coal gas furnace is cheaper than gas furnace. In Morbi most of small and medium size tiles producers using the coal based furnace. Using natural gas based furnace increases production cost many folds.”
However, there is a flip side to the issue, as permission from the Gujarat Pollution Control Board (GPCB) is required to install coal-gas fired furnaces. But, many industry players have changed to coal gas furnace without required permission. "Use of coal gas furnace without permission is illegal and we have identified around 50 units manufacturing ceramic who are using coal-gas fired furnace. We have send detailed report on it and are awaiting further order from our head office," said Amit Pranami, deputy engineer of GPCB Rajkot.
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