Gujarat Industries Functional Amid West Asia Crisis

Ahmedabad, Apr 7 (PTI) Gujarat officials on Tuesday said the industrial sector in the state continues to remain largely functional, albeit at reduced capacity, despite the ongoing West Asia crisis, and asserted that while gas was "fully available", market dynamics and viability issues led to shutdown in some key sectors.

Addressing media here on Tuesday, Additional Industries Commissioner K C Sampat and Gujarat State Petroleum Corporation (GSPC) Senior Vice President (Commercial and Marketing) Dipen Chauhan said the state government was closely monitoring the situation and coordinating with multiple agencies to minimise disruption.

Sampat said the government has undertaken an extensive exercise to assess the status of industries across Gujarat, reaching out to over 4.11 lakh units. Of these, 1,212 industries are currently non-operational, while around 28,517 are functioning at reduced capacity.

He said many of the non-operational units are facing viability challenges arising from transportation and supply chain issues rather than fuel shortages.

On Morbi, a major ceramic manufacturing hub, Sampat clarified that gas availability is not the reason behind the closure of units. Out of 2,561 ceramic units in the district, 984 are currently non-operational, though some may have shut even before the crisis began, he said.

"Ceramic units in Morbi are not shut due to gas shortage. It is because of viability issues, pricing pressures and lack of export demand. It is an issue about viability, not availability," he said, adding that 1,577 units are operating at reduced capacity.

Chauhan echoed this view, stating that industrial gas supply has not been curtailed anywhere in the state so far.

"Gas is fully available. The issue is not availability but market dynamics affecting pricing and demand," he said.

He explained that Morbi's ceramic industry is heavily dependent on exports, with nearly 70 per cent of production meant for overseas markets, particularly in West Asia. However, disruptions in shipping routes, rising freight and insurance costs, and difficulties in sourcing raw materials have impacted operations.


"Hardly any ships are going to those destinations, and costs have increased significantly. This has affected exports and raw material supply. That is why units have opted for voluntary shutdowns," Chauhan said.

Highlighting the consumption trends, he said gas supply to Morbi has dropped sharply from 30-35 lakh cubic metres per day before the crisis to about 4.5 lakh cubic metres now.

Chauhan added that the Morbi industry association is expected to resume gas offtake by the end of April or early next month as conditions stabilise.

Sampat said the state government, in coordination with the Centre, is addressing issues related to fuel supply, logistics and regulatory support. Priority has been accorded to critical sectors, such as steel, automobiles, textiles, dyes, chemicals and plastics.

He noted that there has been no significant report of worker layoffs so far, indicating resilience in the industrial ecosystem. To support labourers, especially in affected clusters, authorities have facilitated the setting up of 159 community kitchens in South Gujarat, benefiting around 50,000 workers daily.

At the district level, regular coordination meetings are being held with industrial associations and stakeholders to obtain real-time feedback and resolve issues promptly, Sampat said.

To ease pressure on gas consumption, the Gujarat Pollution Control Board has allowed temporary use of alternative fuels, such as agro-waste, biofuels and briquettes for three months starting March 30.

Chauhan highlighted that Gujarat has a significant share in India's gas infrastructure, accounting for 23 per cent of domestic PNG (piped natural gas) users and 51 per cent of commercial consumers. The state also has over 1,000 CNG (compressed natural gas) stations, with daily sales of around 40 lakh kg.

There has been no disruption in supply to priority segments, such as domestic PNG and CNG, which serve around 37 lakh households and the transport sector.

"Not a single CNG station has been closed even for a day since the crisis began," he said.