Textile, chemical units shut in Guj after GSPC stops gas supply

Textile,chemical units shut in Guj after GSPC stops gas supply

Image
Press Trust of India Surat (Guj)
Last Updated : Jan 25 2019 | 4:19 PM IST
Around 150 textile and chemical units in south Gujarat have downed shutters for 10 days after industrial gas supply was stopped by Gujarat Gas, a subsidiary of the Gujarat State Petroleum Corporation Ltd.

"Gujarat Gas has completely stopped industrial gas supply to textile and chemical units which has resulted in this shutdown," South Gujarat Textile Processors' Association President Jitu Vakharia said.

"The notice was sent to the units on January 14, informing about industrial gas supply cut from January 21 to January 31, citing supply issues from the international market," he said.

Also Read

Vakharia said that close to 150 textile and chemical units have downed their shutters.

"We will meet Gujarat Gas officials soon and make a representation. If the meeting does not yield any results, we will have to meet top government officials," he said.

Meanwhile, sources representing Gujarat Gas said that the rise in demand for gas in global markets is due to the winter, and gas supply has been diverted to the US and Europe.

"Gas is not available from spot markets. Supply has not been stopped to consumers and essential industries. But supply to non-essential industries like textiles and chemical units has been stopped," a source said.

Officials informed them that they could not stop gas supply to residents and hence had to stop supplying it to textile and chemical units as well.

He claimed that the shut down would affect livelihoods of at least 40,000 workers since the entire chain of production, distribution and supply has been disrupted.

"Currently, production of around 1.5 crore metre polyster fabric a day has come to a standstill. This results in a loss of Rs 40 crore," he said, adding that this is the first time industrial gas supply was stopped completely.

"There used to be supply shortages earlier, but this is the first time that supply has been affected completely," Vakharia said, adding that the issue was discussed with the Centre and the state earlier.

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jan 22 2014 | 9:43 PM IST

Next Story