India’s Steel Ministry has sought assistance from the Oil Ministry to ensure that steel plants in the country are not affected by the LPG shortage caused by the fierce war in West Asia.
“We have spoken with the Ministry of Petroleum and Natural Gas to see what best can be done under the current circumstances,” Reuters quoted a source as saying. “We are still in discussion.”
India, the world’s second-largest crude steel producer, is grappling with the worst LPG shortage in decades as the Iran war halted shipments through the vital Strait of Hormuz. New Delhi has implemented emergency measures to prioritize access to natural gas for essential sectors.
The impact of LPG shortage has started becoming visible on the steel-forging units of Punjab. About 300 industries in Jalandhar district are completely dependent on commercial gas to produce high-strength metal components through hot-forging techniques. A single forging unit requires 425 kg of LPG per day.
“Our production lines require LPG for critical heat processing operations and any interruption in supply will directly impact manufacturing commitments and industrial production,” Ashwini Kumar, president, Hand Tools Manufacturing and Exporters Association, told Hindustan Times.
Industrial units are demanding access to commercial gas on priority basis, otherwise production will come to a standstill. “Expeditious approval will help us maintain production continuity, protect workers’ employment and meet our industrial commitments,” Sharma said.
In Pune, Vedant Goyal of Enlight Metals echoed Sharma’s sentiment.
“If this situation with LPG continues, it will impact not only margins but also jobs, future investments in value-added steel and commitments to long-term contracts both in India and abroad,” he said.
With inputs from Reuters.
