MSME Units in Kolhan Division Face Imminent Shutdown Due to Industrial Gas Shortage
Jamshedpur: Micro, Small, and Medium Enterprises (MSMEs) operating in the Kolhan division are on the brink of a severe operational crisis, with many units expected to halt production within the next four days. This dire situation stems from a significant curtailment in the supply of industrial gases, which has already begun to severely impact manufacturing processes across the region.
Automobile Ancillaries Running on Empty
Sameer Singh, owner of an automobile components manufacturing unit, revealed the precarious state of affairs. "Several small automobile ancillaries have already exhausted their reserve gas cylinders, while others possess stocks that will last only about three to four days," he stated. Singh emphasized that even a modest ancillary unit requires a minimum of two 47.5 kg cylinders daily to maintain operations.
"Approximately 70% of the ancillaries in this industrial area are small-scale units, which means the overall effect of this shortage is going to be disproportionately severe," Singh told reporters, highlighting the vulnerability of the sector's backbone.
Widespread Impact on Supply Chains
The entrepreneurs further explained that a majority of these MSME units are critical suppliers of components to major automobile companies based in Jamshedpur and other industrial hubs. Additionally, many units also serve vital railway and defense organizations, indicating that the production halt could ripple through multiple strategic sectors.
These ancillary industries primarily consist of:
- Powder coating and fabrication units
- Continuous-process industries
- Cathodic electrodeposition units
Mahesh Sonthalia, another local entrepreneur, detailed the technical dependency. "Fundamental manufacturing procedures such as cutting, forging, drying, and brazing are essential for shaping, treating, and joining metals. Each of these processes demands a considerable and consistent volume of industrial gases to generate the necessary heat," he explained.
GAIL Supply Curtailment Following Government Notification
The gas shortage crisis has also begun to affect medium-sized enterprises that source their industrial gas directly from GAIL (Gas Authority of India Limited). The supply issues trace back to a central government notification issued on March 9, which prompted GAIL to regulate and curtail gas distribution to industrial customers.
H P Srivastava, a senior GAIL official based in Adityapur, confirmed the regulatory action. "The supply of gas to our industrial customers is being strictly regulated in accordance with the recent government notification," Srivastava stated. He disclosed that the current daily consumption of GAIL-supplied gas in the Adityapur industrial area stands at 30,000 standard cubic meters (SCM).
Industry Leaders Voice Grave Concerns
Santosh Khetan, a prominent industrialist, warned of catastrophic consequences if the gas supply is completely halted. "We anticipate that the ongoing geopolitical conflict will not resolve swiftly, and the import of gas could face further crippling disruptions. This will directly impact manufacturing work, with severe ramifications for employment and business sustainability across the region," Khetan asserted.
He appealed for immediate intervention, suggesting, "At the very least, a moderate and guaranteed quota of industrial gas should be established and reserved specifically for MSMEs to prevent a total collapse."
Formal Appeals for Government Intervention
In response to the escalating crisis, Inder Agarwal, President of the Adityapur Small Industries Association (ASIA), has taken formal steps. Agarwal confirmed that he wrote to Union Petroleum Minister Hardeep Singh Puri on Tuesday, urgently requesting provisions to reserve a portion of industrial gas specifically for manufacturing usage to safeguard the MSME sector.
The collective appeal from industry bodies and entrepreneurs underscores the critical need for a swift policy response to avert a widespread industrial shutdown in the Kolhan division, which comprises the districts of East Singhbhum, West Singhbhum, and Seraikela-Kharsawan.
