Exporters seek priority allocation of natural gas, LPG for export units
New Delhi: Exporters’ body FIEO on Thursday urged the government to allocate LPG and natural gas to export-oriented manufacturing units on a priority basis, as any disruptions in the fuel availability will create problems in maintaining production schedules.
Federation of Indian Export Organisations (FIEO) President S C Ralhan said that he has written a letter in this regard to the Commerce and Industry Ministry.
“Manufacturing exporters are facing issues. There is an urgent need for priority allocation of LPG/natural gas as fuel for export-oriented units (EOUs) and export-oriented SMEs,” Ralhan said.
The West Asia crisis, triggered by the launch of a joint attack by the US and Israel on Iran, has disrupted energy supplies in several countries. The government has revised the priority order for allocating domestically produced natural gas, placing LPG production alongside CNG and piped cooking gas at the top.
He said that export-oriented manufacturing units are operating in a highly competitive global environment and are constantly competing with suppliers from countries such as China and other East Asian economies.
Large global buyers follow highly structured global sourcing models and require uninterrupted production and timely deliveries from their suppliers.
“In the event of disruption in fuel availability, Indian exporters are unable to maintain production schedules. Consequently, international buyers are compelled to shift their orders to competing countries, particularly China,” FIEO said in a communication to the commerce ministry.
In this context, the availability of LPG/natural gas as an industrial fuel is critical, particularly for export-oriented SMEs and EOUs that rely on it for their manufacturing processes, it added.
“We fully appreciate that the present gas supply situation is challenging. However, even through a calibrated mechanism, a dedicated priority allocation for export-oriented industries would help ensure that production and export commitments are not adversely affected,” Ralhan said.
He added that ensuring fuel availability will not only protect existing export orders but will also reinforce international confidence in India as a reliable sourcing destination.
Sharing similar views, Jalandhar-based Hand Tools manufacturers and Exporters Association President Ashwani Kumar said that due to the present constraints in LPG supplies, production activities are facing serious disruptions.
“In this regard, we humbly request your kind approval for 425 kg LPG per day for our production line operations and 19-kg commercial LPG cylinders for factory mess and canteen to provide meals to workers and staff,” Kumar said.
Considering the present policy for prioritising essential non-domestic LPG requirements, he requested the Centre to treat their requirement as urgent and grant approval for regulated supply through the nearest PSU oil marketing firms.
“An early approval will greatly help us maintain production continuity, protect employment of workers and meet our industrial commitments,” he added.
