A note from Morbi questions Ceramic Industry strike

Morbi, 4 December 2013

Here is a brief note sent to DeshGujarat for publishing by a prominent person in Morbi who is watching Morbi ceramic industry affairs closely for over two decades. The note questions motive and impact of present strike of ceramic unit owners:

Recently I read your blog about crude bomb attack (https://deshgujarat.com/2013/11/30/morbi-crude-bomb-thrown-at-ceramic-unit-owners-house-for-not-joining-strike/) and at the bottom you have mentioned five demands and their answers why most demands are pointless. Seriously, this “bandh” should be over ASAP. It is good for Morbi’s ceramic industry as well as many labors who have been jobless since a week and few other supporting businesses i.e. raw material, logistics, transport.

Due to trouble at just few companies, whole entire ceramic industry is on strike and that too for infinite days until their almost unacceptable demands are fulfilled. I am personally afraid for those small company owners who have hardly managed to set their market and now they are stop. Will foreign buyer ever going to trust them for regular supply in future?

This needs to be solved as soon as possible. A note on this is presented below with request to publish it:

Morbi’s ceramic units are on strike against GSPC’s Rs. 2.50 hike in PNG price. At the same time there are many units that don’t support this agitation. They are of opinion that this agitation is only attached with a single issue of coal gas. The units that have not joined the strike have never supported the idea of using coal gas as fuel. Such unit owners believe that by shutting down the units to express anger is self-damaging act, and it would only harm our own business. It is High Court that has ordered closure of coal gas units, and not the state government.If one wants to protest the decision, the right option is Supreme Court. Only Supreme Court can give permission to coal gas and not centre or state. Coal gas plants were spreading pollution and therefore rural citizens of Morbi belt had demanded closure through their court petition.

Other important point is that most of the units that are part of the strike today were totally using coal gas, and they never sought GSPC or PNG connections. They are not likely to get such connections in near future. Moreover in last month-end GPCB had served closure notices forcing them to remove coal gas plant to get permission. Thus such units are ordered closure for indefinite time even before the present agitation. More interesting fact is that more than 150 units have never used GSPC gas. So how the present gas price hike makes any difference to them? What does the agitators want to prove? It should be noted that even if GSPC is ready to supply gas at cheaper rate, such units will need to remove coal gas plant from their factory in view of GPCB’s closure notice. They will not be able to reopen their units without complying.

It is well-known that the biggest reason for success of industries in Morbi is GSPC’s pipe line laid by present government of Gujarat in this remote area. It is this GSPC pipe line that provides continuous and environment friendly fuel which is very safe method too. We are lucky that Gujarat government has provided this facility which is not available to even the competitors in China. Only real businessman can value the benefit of natural gas. If we don’t take advantage of this service, and support coal gas that is harmful for our city, health and environment, then it’s inhuman behavior.

The agitators project GSPC as main issue of agitation, but the in-depth realities are different.

The units that are considered major players of industry are closed due to GPCB’s closure notices. More notices are to be served in near future. Owners of such units want to rescue themselves from shame attached with closure. They are selfish enough to think that their market will face damage and other units that function properly will cover their market.Such unit owners have put GPCB closure issue under carpet and they are projecting GSPC price hike as the main reason behind agitation. When you look at the issues they are projecting and publicizing, you feel that ceramic industry is in very poor state and its end is closer. But that is not the fact. Even today in Morbi more than 50 units are attached to GSPC. They are attached to GSPC from the beginning. And such units have also shown notable growth.

Other issues like VAT and Excise rates are not the issues that can be resolved in one night or one week. We know such taxes are not imposed recently. Such rates are existing from long time. Then why suddenly agitation on that issue? If governments keep changing the tax rates because of such agitation, then other industries will also start doing that. Then how the state or the nation would progress? Legal steps and proper negotiations can bring results. If we look at Morbi agitation, it seems that some issues are such that they can’t be solved in short term, and therefore agitation can be stretched longer,and entire market can be forced to halt. So that the units that have been served closure notice and units that are running honestly both would shut down.

Today our Gujarat is proud of industrial progress and complementing Eco-system. Morbi units are harming Gujarat’s image by agitating on unnecessary issues. If someone wants to join the agitation, he can, but none should force others, issue threat to others or terrorize others to join the strike. Last Friday one unit owners who publicly refused to join the strike faced bomb attack at his house. This is shameful incident for entire industry in Morbi. After this incident, some unit owners are planning to stay away from strike. They believe hat business fights should be limited to business. Unity and peace is good for all. Adopting other means doesn’t look good.

Looking at the present situation, the question arises is that whether this agitation will actually bring any result? Will government amend VAT or Excise structure over the night? GSPC will cut down the price of gas or will make separate policy for units that don’t use PNG for long time? The agitation is likely to impact small units adversely. Any way out is awaited at this point.