Gujarat has decided to reduce the rate of Piped Natural Gas (PNG) - Indian tiles blog - MORBI | Tiles manufacturing hub of India

Go to content

Gujarat has decided to reduce the rate of Piped Natural Gas (PNG)

MORBI | Tiles manufacturing hub of India
Published by in news ·

Gujarat has decided to reduce the rate of Piped Natural Gas (PNG) being supplied to the state's industrial sector by GSPC Gas– a subsidiary of the Gujarat State Petroleum Corporation.

Highly-placed sources in the state Energy and Petrochemicals Department said that the government is likely to announce its decision on this very soon. The government may reduce the prices of PNG by at least 20 to 25 per cent, sources said. At present, PNG is being supplied to industries at Rs 19.50 per Standard Cubic Metre (SCM).

Minister of State for Energy Saurabh Patel declined to comment on the issue. A senior official, however, told that figures are being worked out for reduction in PNG prices, which are expected to be finalised in a day or two.

The move assumes significance as the government wants to send positive signals among prospective investors ahead of the two-day biennial Vibrant Gujarat Global Investors' Summit – 2009 to be held at Science City near Ahmedabad on January 12-13.

At present, GSPC Gas supplies about 15 lakh SCM per day to over 335 industrial units across the state through the 1,400 km cross-country gas grid laid down by the Gujarat State Petronet Limited (GSPL).

GSPC Gas has covered major industrial areas like Vapi, Morbi, Sarigam, Thangadh, Gandhinagar and Gundlav GIDC estates, Navsari and Mehsana, under its supply network.

PNG is supplied to as many as 173 industrial units in Morbi in Rajkot district, which is considered the heart of the country's ceramic industry with over 70 per cent of the total market share in the country. Over 50 industrial units located near Vapi in South Gujarat are also using PNG.

The gas is primarily supplied to ceramic companies in Gujarat
pharma, chemical, fertilisers, steel and power units in the state.

Back to content