Morbi, 30 November 2013

A group of coal gas supporting ceramic unit owners in Morbi on Friday night attacked house of PNG run ceramic unit owner with crude bomb. The incident happened at 11.30 pm. Police complaint has been filed in this regard and protection cover has been provided to victim ceramic unit owner.

The Ceramic industry association has given strike call on various issues pertaining to state and central governments. One Shreeji Ceramic had not joined the strike. On Friday, the association members rushed to Shreeji Ceramic to enforce strike. Late in the evening at 11.30 pm owner Haribhai Patel’s hose in New Adarsh Society was attacked by strike supporters. Police rushed to the place, received complaint and provided security cover to ceramic unit owner.

Ceramic units in Morbi are on strike majorly against the PNG price hike announced by the Gujarat State Petroleum Corporation(GSPC). However insiders say that the real reason of strike is enforcement against use of coal gas as fuel. Instead of going to the Supreme Court against the High Court order, the unit owners have selected the path of agitation to continue to use coal gas as fuel which is illegal now.

The Gujarat High Court recently enforced PNG use for ceramic units, and asked Gujarat Pollution Control Board(GPCB) to give closure notice to units that use coal gas as fuel. The High Court this week also issued contempt notice to GPCB for not taking actions against coal gas based units.

While other ceramic units were using environment unfriendly by cheaper coal gas as fuel, Shreeji Ceramic and some other units continued to use costlier PNG supplied by the Gujarat State Petroleum Corporation(GSPC) even in tough competition. Such units seek incentive from GSPC for their loyalty and clean practices.

Some ceramic unit owners who have not joined the strike strongly believe that strike call is self destructive. Foreign buyers just care about their orders. They don’t care for local situations. If commitments are not fulfilled and orders are not completed on time, the buyers may switch over to other supplier. In competitive world when China’s threat is very serious, one can’t afford to go on strike. The issues can be resolved through alternative ways.

What are the demands of Ceramic unit owners?

-GSPC gas price should be Rs. 25/cubic meter.

Author’s view:To supply gas at this price is not possible for GSPC in view of international prices scenario. GSPC has to purchase gas from abroad, as there’s shortage of locally sourced gas as per the central government which controls its supply. Yesterday in Rajkot, state minister Saurabh Patel said that ceramic unit owners were asked to tell the government how much gas they may need in next few months, however there was no reply! Their reply was necessary because GSPC has to order gas from abroad. Why GSPC shoud go bankrupt and offer gas at unaffordable rate to ceramic units?

– GPCB should provide guide line and give consent to use coal gas for ceramic production.

Author’s view:The Gujarat High Court has recently given a clear verdict that due to enviornmental reasons, coal gas units must face closure. The High Court has enforced PNG option. GPCB has been served contempt notice this week for not serving closure notices. Instead of protest against the state government, Morbi Ceramic Association should go to the Supreme Court if they are not satisfied with High Court order.

-Reduction of VAT on ceramic product from 15% to 5%.

Author’s view:This is not new tax imposed. It was there already. If government start reducing taxes due to strike threats, imagine what would happen next?

-Central excise duty reduction from 12.36% to 6%.

Author’s view:Not a new duty. Why didn’t the units protest when duty was declared/hiked? How many representations were made at Delhi against high duty?

-Impose anti dumping duty on imported Chinese tiles.

Author’s view:This is valid point, but strike wouldn’t shake the union government. Representations and other programems right in Delhi would only make difference.