Ceramics firms face coal crunch as Gujarat pollution body seals Navlakhi port

The cost of transporting coal from Navlakhi port is Rs 400 per tonne, while it has gone up to Rs 620-650 per tonne from Kandla port

It's a tough time for ceramics manufacturers in the Morbi region of Saurashtra. After the state pollution regulator, Gujarat Pollution Control Board (GPCB) restricted cargo handling at the Navlakhi port in the Gulf of Kutch, ceramics players are facing a severe shortage of coal.

Industry sources said that coal shortage has led 35-40 ceramic units to shut operations, while some more are considering closure. The closure at Navlakhi port has not only affected the ceramic industry but has also adversely affected the transport business.

Operations at the Navlakhi Port were stopped following the directions by GPCB, owing to air pollution. The state pollution regulator issued the closure notice to the port authority, Gujarat Maritime Board (GMB), citing air pollution at the port last month.

"Almost 60 per cent of the coal for the ceramics industry in Morbi comes from Navlakhi port. But since the port is closed, we are facing shortage of coal," said Divyesh Patel, president of Morbi-Dhuva Glaze Tiles Association.

According to Patel, during the past one week, almost 35-40 units have shut down and more are considering closure. There are around 250 coal-based ceramic manufacturing units in Morbi.

Air pollution levels at Navlakhi Port, which handles around six to seven million tonnes of coal annually, had increased significantly. Navlakhi is an all-weather lighterage working port located in the Gulf of Kutch, about 50 km from Morbi in Rajkot district.

About 650 trucks carry around 6,000 tonnes coal to Morbi from Navlakhi port every day. After Navlakhi port closed down, ceramic players have to bring coal from Kandla and Mundra ports. This has increased the cost of transport by almost 50 per cent.

In a bid to reduce production costs, which have gone up due to a rise in gas prices, Morbi-based ceramic manufacturers are switching over to coal-fired furnaces from the existing gas-based furnaces. This move comes after the increase in gas prices by the natural gas provider in the region, Gujarat State Petroleum Corporation (GSPC).

"Ceramic players have shifted to coal, as the gas price has significantly increased in the past one year. Coal is now the main fuel for the ceramic industry, and shortage of coal will hurt many in this time of slowdown," said M P Shorya, former secretary of the Morbi-Dhuva Glaze Tiles Association.

The cost of transporting coal from Navlakhi port is about Rs 400 per tonne, while it has gone up to about Rs 620-650 per tonne from Kandla port. Moreover, a truck can make two trips in a day from Navlakhi, but that is not possible from Kandla port, as the distance is almost double that from Navlakhi.

"Due to the higher transportation cost, our business from the ceramic industry has declined by about 30 per cent. About 400 trucks are parked without orders," said Prabhat Dangar, president of the Morbi Truck Transport Association.