Indore Industries Grapple with Severe PNG Supply Cuts Amid Global Crisis
Industrial units across Indore, Pithampur, and surrounding manufacturing belts are facing a critical fuel shortage as piped natural gas (PNG) supplies have been further curtailed to just 55 percent of their average consumption. This latest restriction, effective from March 26, follows an earlier reduction that limited supplies to 65 percent, tightening availability for industrial and commercial consumers and raising alarms about potential production disruptions and escalating operating costs.
Force Majeure Invoked Due to West Asia Crisis
The curbs have been imposed after liquefied natural gas shipments were severely disrupted due to the ongoing West Asia crisis, prompting suppliers to invoke force majeure clauses. This legal provision allows parties to suspend contractual obligations due to extraordinary circumstances, leaving industries scrambling to adapt to the sudden fuel scarcity.
Industry Voices Concern Over Production and Costs
Industry representatives have expressed deep concern that the reduction in gas availability could severely hamper production schedules and force units to scale down operations. Sectors where PNG serves as a primary fuel for manufacturing processes are particularly vulnerable.
Gautam Kothari, president of the Pithampur Audyogik Sangathan, highlighted the growing uncertainty. "With PNG supplies now restricted to 55 percent, several units may face difficulties maintaining normal production levels. Industries that rely heavily on gas will have to either reduce output or shift to alternate fuels, which will significantly increase production costs," Kothari stated.
Financial Strain from Alternative Fuel Options
Industrialists warn that units consuming gas beyond the restricted quota may be compelled to purchase spot regasified liquefied natural gas. This alternative could cost over Rs 130 per standard cubic metre plus taxes, making it prohibitively expensive for many manufacturing units, especially small and medium enterprises.
Impact on Production Planning and Sectors
Yogesh Mehta of the Association of Industries Madhya Pradesh (AIMP) emphasized the broader implications. "The reduction in gas supply will directly impact industrial operations. Many manufacturing processes are designed around gas-based systems, and sudden supply cuts make it difficult to maintain consistent production," Mehta explained.
Industry bodies identify several sectors at high risk of operational challenges if the curbs persist, including:
- Engineering goods
- Pharmaceuticals
- Packaging
- Food processing
Long-Term Risks for Industrial Clusters
Prolonged supply restrictions could lead to a cascade of negative effects, such as lower output, higher fuel costs, and delays in production schedules. This is especially concerning for MSME units operating in key industrial clusters like Pithampur, Sanwer Road, and Mandideep, where gas dependency is high and margins are often thin.
The situation underscores the vulnerability of local industries to global geopolitical tensions, with the West Asia crisis now directly impacting manufacturing stability in central India. Stakeholders are calling for urgent measures to mitigate the supply crunch and prevent long-term economic damage to the region's industrial base.
