Bengaluru hotels face shutdown from March 10 due to commercial LPG supply crisis
Bengaluru (PTI): Hotel and restaurant operations in the city are likely to be affected starting March 10, following a sudden and total halt in the supply of commercial gas cylinders, the Bangalore Hotels Association said on Monday.
This development comes amid rising energy costs and supply constraints caused by the West Asia conflict.
"Since the gas supply has stopped, the hotels will be closed from tomorrow," the association said in a release.
Noting that the supply of commercial gas cylinders stopped today, it said, since the hotel industry is an essential service, common people, students, and medical professionals, who rely on the hotels for daily meals, will be affected.
"In addition, our hotel industry will also face difficulties until the gas supply returns to normal," it added.
The association said oil companies had guaranteed an uninterrupted gas supply for 70 days, making the sudden stoppage a "big blow" to the hotel industry.
"Therefore, we expect the concerned Union Ministers to take appropriate action immediately in this matter and resume commercial gas supply and provide cooperation to the hotel industry," it added.
Speaking to reporters, P C Rao, Honorary President of the Bangalore Hotels Association, said hotel owners are unwilling to suspend operations for any reason, but the government's move has made it inevitable for most of them to shut down.
"Without gas, food and refreshments will not be available at the hotels starting tomorrow. Hotels will not open. We have spoken and have sent communications to central ministers. We have also brought the matter to their notice through some MPs from Bengaluru. Without gas, it will not be possible to prepare food, so the government should respond immediately. Let them (government) cut (supplies) to an extent, if required. We too are aware of the situation and know the reasons," he added.
Addressing the media, Chief Minister Siddaramaiah expressed concerns over the supply chain disruption, saying the rising LPG prices is a separate issue.
The central government increased the price of LPG cylinders for commercial use by Rs 115 and for domestic use by Rs 60, he said, adding that "everyone is of the opinion that this is a lot. What they are doing is not right."
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Rajnath Singh chairs IGoM meet, urges constant vigil over West Asia crisis
New Delhi (PTI): Defence Minister Rajnath Singh on Thursday emphasised the need for round-the-clock monitoring of the West Asia conflict and called for a calibrated response to deal with any eventuality to ensure that national interests remain protected.
Singh made the comments while chairing a high-level meeting of the Informal Group of Ministers (IGoM) set-up to monitor the situation in West Asia.
The meeting was attended by External Affairs Minister S Jaishankar, Finance Minister Nirmala Sitharaman, Oil Minister Hardeep Singh Puri, Power Minister Manohar Lal, Chemicals and Fertilizers Minister J P Nadda, Consumer Affairs Minister Prahlad Joshi and Minister of Railways, Information and Broadcasting, Electronics and Information Technology Ashwini Vaishnaw.
In view of the "uncertain situation", the defence minister underlined the importance of round-the-clock monitoring of the situation and the need to respond in a calibrated manner to deal with any eventuality, an official readout said.
He stressed on the need to leave no stone unturned to ensure that the people of the country face the minimum effect of the conflict, it said.
It was the second meeting of the IGoM after it was set up last month.
The IGoM was apprised of the measures being taken by the government in the wake of the ongoing West Asia conflict, Singh said on social media.
"We also deliberated upon the next steps to be taken by the government to mitigate any adverse impact arising due to the ongoing conflict," he said.
The defence ministry said in the readout said, "In the meeting, the seven empowered groups of secretaries briefed the IGoM on the steps being taken to tackle the situation."
"The IGoM was apprised about measures undertaken by the Ministry of Finance to address concerns arising due to global trade disruptions and provide relief and support to the industry, especially manufacturing, and bolster investor confidence," it said.
It listed measures including notification issued on Wednesday on full customs duty exemption on 40 critical petrochemical products till June 30.
The ministry also mentioned announcement of a special one-time relief measure for eligible units in SEZs to sell manufactured goods in Domestic Tariff Area (DTA) at concessional customs duty rates to be effective from April 1 to March 31.
It also noted another notification issued by the Department of Revenue clarifying that the provisions of GAAR (General Anti Avoidance Rules) will not be invoked in respect of investments made prior to April 1, 2017.
"These measures will reduce cost pressures on downstream sectors including textiles, packaging and pharmaceuticals, facilitate supply stability in the country and provide requisite clarity for investors contemplating investments in India," the readout said.
Defence Minister Singh appreciated the government's decision to impose a 25 per cent cap on the monthly increase in aviation turbine fuel prices for domestic operations, with effect from April 1.
This step will help protect the people from sudden increase in fares, he said.
The government has accorded highest priority to domestic LPG supply, with refinery production enhanced to fully meet consumption requirements, according to the readout.
"The IGoM was informed that there have been no reports of dry-out at LPG distributorships, and delivery of domestic LPG (liquefied petroleum gas) cylinders continues as per the normal schedule. The temporary supply concerns arose due to instances of hoarding and black marketing, which triggered panic buying in certain areas," it said.
The ministers were informed that strict enforcement action is being undertaken, with raids being carried out across multiple states and Union territories to curb hoarding and black marketing of LPG, the ministry said in the readout.
Action has also been taken against some LPG distributors who engaged in malpractices, it said.
"To support migrant labour and low-consumption households, the government is ensuring adequate availability of 5 kg free trade LPG cylinders, and since March 23, over 4.3 lakh such cylinders have been sold. Special focus is being given to states where demand is higher," it said.
The IGoM was apprised that industrial requirements dependent on commercial LPG are being met, with over 80 per cent of pre-crisis supply levels being maintained to ensure continuity of operations.
"Special meetings have been held with ministries and stakeholders of different industries to understand their demand and meet their needs. Oil PSUs are ensuring continued supply of Auto LPG across the country," the readout noted.
"However, some supply constraints are being faced by private operators due to their procurement challenges, which is why lines are being observed at PSU auto LPG pumps. Wherever the autos are dual feed and can use petrol, they are being encouraged to use petrol," it said.
