Ceramic industry facing shut down in Morbi as gas supply crisis intensifies

New Delhi, Mar 5 (PTI) As many as 350 factories in Gujarat's Morbi, the hub of ceramic tiles manuacturing in India, are likely to close down by Friday due to disruption in gas supply in the aftermath of the US-Israel strike on Iran, Chairman of ceramic panel, Capexil, Nilesh Jetpariya said on Thursday.

The industry in Morbi is facing an acute shortage of propane or natural gas, which is key for its operations, particularly for firing kilns and drying processes and if supplies don't resume at the earliest by March 15 the entire industry is looking at total shut down, former president of Morbi Ceramics Associations, KG Kundariya told PTI.

"There are about 750 factories in Morbi, which accounts for about 90 per cent of India's total tile production...By tomorrow about 350 factories will be closed due to non-availability of gas supplies," Jetpariya said.

He was responding to a query on the impact of disruption in gas supplies of ceramic tiles production.

The supply of propane by tankers has become irregular since the crisis in West Asia erupted, and only 30 per cent of the industry in Morbi has a connection to Gujarat Gas - a city gas distribution company.

Elaborating further, he said Gujarat Gas has decided to reduce supply by 50 per cent of consumption of each factory in February.

"We don't have any other options. When there is no gas supply what can we do?," he said when asked if there were no alternatives left.

Jetpariya, who is also the ex-President of Morbi Ceramic Association said the total Indian tile production anually is around Rs 70,000 crore, out of which Rs 50,000 crore is consumed in the domestic market and the rest Rs 20,000 crore are exported.

Another former president of Morbi Ceramics Associations, KG Kundariya said even the avaliable supply from propane tankers have become expensive with the operators hiking prices.

With the situation becoming dire, the government must look at importing gas from Russia, he said, adding if the supplies don't resume at the earliest by March 15 the entire industry is looking at total shut down.

This will impact around six lakh workers who are directly employed by the industry and also people who are in the ancillary industries.

Morbi produces over 90 per cent of the Indian tiles, said Jetpariya. PTI KRH RKL RKL MR