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Morbi Reprieve As Gas Price Cut
Type:Press|IndustryNews  Date:2016-3-17  Resource:  Hits:29508  print close


Gujarat government’s move to reduce prices of piped natural gas (PNG) for industrial users has given a new lease of life to ceramic industry in Morbi, which was reeling under slowdown and fierce competition from China. 


Reduction in production cost as a result of gas price cut is expected to provide a much needed cushion to India’s largest cluster of ceramic units to face Chinese onslaught and slowdown to some extent. 


Ceramic tile manufacturers of Morbi estimate around 10% decrease in their production cost with gas prices coming down. The Gujarat government had slashed prices of piped natural gas prices by Rs 5 per cubic meter. 


The cost of gas for the ceramic industry has come down to Rs 27 per cubic meter effective January 1 from earlier Rs 30 per cubic meter.

 

The price will further more down by Rs 2 per cubic meter from April 01, 2016. 


As many as 350 units in Morbi had brought their shutters down for a month in November due to slowdown and Chinese competition. Around 600 odd ceramic tile units in Morbi consume 25 lakh cubic meters per day and Rs 5 per cubic meters dip in gas price will bring the fuel cost down by Rs 1.25 crore per day. Decline in production will also ease pressure on margins.

 





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