Iran conflict: Nearly 100 ceramic units in Gujarat's Morbi shut due to fuel supply disruption
Morbi (Guj) (PTI): Nearly 100 ceramic manufacturing units have shut down in Gujarat’s Morbi district following a disruption in fuel supplies linked to the US-Israel-Iran war, with industry representatives warning that another 400 factories may close within days if the supply doesn't normalise.
Manoj Arvadiya, president of the Morbi Ceramic Manufacturers Association (Vitrified Tiles Division), said the situation could worsen in the coming days if propane supplies are not restored and suppliers fail to issue clear guidelines.
"Due to the prevailing war-like situation, propane gas has not been available for the past two days, and around 100 units dependent on the fuel have already shut down," Arvadiya told reporters.
He warned that nearly 400 more units that use propane may be forced to halt operations within a week if the supply situation does not improve.
"If there is no proper guideline on gas availability and the supply does not normalise, we foresee that around 400 more propane-powered units may shut down by next week," he said.
Morbi is one of the largest ceramic manufacturing hubs in the world, housing hundreds of units that make tiles and other ceramic products for domestic and international markets.
Arvadiya said units that depend on gas supplied by Gujarat Gas were currently operating, but their future also appeared uncertain due to the limited availability.
"Gujarat Gas customers are still operating, as the resource is available to them at present. However, if we calculate based on the current availability, which is roughly around 50 per cent, even those units may face closure by March 20," he said.
The disruption in fuel supply has also affected export commitments, he said.
Arvadiya said, "The export orders that we had already produced are ready, but they cannot be dispatched. Many new export orders have also been put on hold."
The disruption could also affect the financial cycle of the industry, which relies heavily on the timely shipment of export consignments, he added.
"In exports, payments are linked to shipment cycles. Once material is loaded and shipped, the next payment cycle begins. If shipments are delayed, our financial cycle will also get disturbed," he said.
The situation is also grave for workers employed in the sector. Arvadiya said factories are retaining most labourers despite the crisis.
"At present, labourers are still being retained. Contract workers are technically the responsibility of contractors, but in such situations, we also try to extend help to them in whatever way possible," he said.
The industry body has also sought support from the state government if the crisis continues for a prolonged period.
Arvadiya said Gujarat Chief Minister Bhupendra Patel had expressed concern over the situation.
"The chief minister recently spoke to Tankara MLA Durlabhji Dethariya and sought to know what assistance can be provided to the ceramic industry. We hope to meet the chief minister and seek relief if the crisis continues for a longer period," he said.
Industry representatives had earlier warned that the Morbi ceramic sector could face a large-scale shutdown if gas supplies from the Gulf region remained disrupted due to the geopolitical tensions affecting shipments passing through the Strait of Hormuz.
The US and Israel launched military strikes on Iran on February 28, killing Iranian Supreme Leader Ayatollah Ali Khamenei.
Following the military offensive, Iran carried out a wave of attacks mainly targeting Israel and American military bases in several Gulf countries, including the UAE, Bahrain, Kuwait, Jordan and Saudi Arabia.
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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.
