Gas Shortage Hits Marathwada Industries

Chhatrapati Sambhajinagar, Mar 10 (PTI) Associations of small-scale industries and hotels in Marathwada on Tuesday flagged concerns about the shortage of gas, as global fuel supply chains remain choked by the ongoing US-Israel-Iran conflict.

Four small-scale units in the industrial area of Chhatrapati Sambhajinagar have been shut, while several others are on the brink of closure, as they are left with stock that can only sustain them for the next few days, Arjun Gaikwad, president of Marathwada Association of Small Scale Industries and Agriculture (MASSIA), said.

Talking to PTI, Gaikwad said the disruption in the gas supply has started affecting the auto parts, engineering, hospitality and other industries here in Chhatrapati Sambhajinagar.

"We held a meeting of stakeholders facing shortages. Four units in Chhatrapati Sambhajinagar were shut today. At least 17 units will have to close in the next three to four days," he said.

Gaikwad warned that if the supply is not regulated properly, the entire chain will be disrupted, as the auto parts manufactured in Chhatrapati Sambhajinagar are sent to different parts of the country.

"We have discussed alternatives in this crisis situation. The industry is also contemplating running its inventory on diesel. However, this is a time-consuming process. We are not sure if we will get the necessary diesel supply," he said.


Chamber of Marathwada Industries & Agriculture (CMIA) president Utsav Machar stated that industrial units in the district need 150 to 240 metric tonnes of gas daily.

"The gas shortage will have a 'ripple effect'. Our hotel industry members can sustain their establishments only for the next five to seven days. The processing industry here needs around 150 to 240 metric tonnes of gas per day, as it is widely used in auto, engineering, ceramic and breweries," he said.

Harpreet Singh, president of the local Hotels and Restaurants Association, said that the LPG supply to hotels and eateries should be restricted, but not cut off.

"Establishments cannot sustain for long amid the shortage. Events are planned in hotels. This will impact tourists and people dependent on hotels, he said.

Maharashtra Food and Civil Supplies Minister Chhagan Bhujbal has said commercial LPG supply may be reduced in the coming days as the Centre has asked oil firms to prioritise domestic consumers amid the West Asia conflict.

India consumes about 31.3 million tonnes of LPG annually. As much as 87 per cent of this is in the domestic sector, i.e., household kitchens, and the rest in commercial establishments such as hotels and restaurants.

Of this total requirement, as much as 62 per cent is met through imports. The US-Israel's attacks on Iran and Tehran's retaliation have shut the Strait of Hormuz, a key sea route through which India gets 85-90 per cent of its LPG imports from West Asian nations, including Saudi Arabia and Qatar.