India's steel ministry has sought assistance of the oil ministry to ensure that steel plants in the country are not affected by the LPG shortage brought on by a raging war in West Asia.
“We have taken up with the Ministry of Petroleum & Natural Gas to see within the existing conditions what best can be done,” Reuters reported, citing a source as saying. “We are still under discussion.”
India, the world's second largest crude steel producer, is in the midst of its worst LPG shortage in decades as shipments through the crucial Strait of Hormuz have come to a halt due to the Iran war. New Delhi has invoked emergency measures to prioritising access to natural gas for essential sectors.
The impact of the LPG shortage has started to show in the steel-forging units of Punjab. Nearly 300 industries in Jalandhar district rely entirely on commercial gas to produce high-strength metal components through hot-forging techniques. A single forging unit requires 425 kg LPG per day.
“Our production lines require LPG for critical heat processing operations and any interruption in supply directly affects manufacturing commitments and industrial output,” Ashwani Kumar, president of Hand Tools Manufacturing and Exporters Association, told Hindustan Times.
{{/usCountry}}“Our production lines require LPG for critical heat processing operations and any interruption in supply directly affects manufacturing commitments and industrial output,” Ashwani Kumar, president of Hand Tools Manufacturing and Exporters Association, told Hindustan Times.
{{/usCountry}}The industrial units are seeking priority access to commercial gas, failing which production would come to a standstill. “An early approval will help us maintain production continuity, protect employment of workers and meet our industrial commitments,” Sharma said.
In Pune, Enlight Metals' Vedant Goel echoed Sharma's sentiment.
“If this LPG situation continues, it will not only impact margins but also affect jobs, future investments in value-added steel, and the confidence to commit to long-term contracts, both in India and overseas,” he said.
With inputs from Reuters.