GCCI demand adequate gas supply to industries in Gujarat

Ahmedabad, Oct 6 (UNI) President of Gujarat Chamber of Commerce and Industry (GCCI) Rupesh C Shah has urged the Union Petroleum and Natural Gas minister Murli Deora for more gas supplies to small and medium scale industries in the state.

GCCI President, while attending a meeting of Oil Industry Review Committee at Vadodara last evening with the minister, emphasised the need to ensure adequate gas supplies to small and medium scale industrial units of Gujarat. He told the committee that due to inadequate gas supplies, the industrial units are facing difficulties, especially the Ceramic Industry.

Expressing his concern about the price hike of 139 per cent during last two and half years, Mr Shah elaborated that one of the reasons for such hike is the fact that due to inadequate supplies, the state has to buy gas from open market at spot prices.

Mr Deora, after hearing them, stated that he is aware of Panna-Mukti-Tapti gas issue pertaining to Gujarat and will make necessary efforts to provide adequate supplies to Gujarat Industries.

He said Gujarat will start receiving gas from Krishna-Godavari basin from next year, in which the laying of pipeline is almost at completion stage.

ONGC Chairman and Managing Director R S Sharma agreed that spot prices of Gas are considerably high and it is unfortunate that Gujarat has to buy at spot prices to fill the gap in supplies and assured that he will look into the details and do the needful.

In a memorandum submitted to the minister, Mr Shah pleaded that Central government should fulfill its promises made in June 2000 to provide 2.25 MMSCMD gas and thereafter as per agreement entered in July 2005 should provide 1.3 MMSCMD gas to Gujarat State Petroleum Corporation for PMT joint ventures.

It also pleaded that at present six lac SCMD gas is being consumed by public transport and private vehicles. In coming years, the demand from this sector is going to rise hence Gujarat should be covered under the administrative price mechanism, under which Mumbai and Delhi are receiving their supplies of CNG, Mr Shah added.

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