Rajkot: The ongoing war in West Asia has begun to hit industries, with the situation worsening day by day. Gas-based industries in the Shapar-Veraval industrial area are facing a major crisis after the gas supply company reduced supply by 50 percent with immediate effect and imposed a three-fold price hike on units consuming more than the average gas quota. Office bearers of the Shapar-Veraval Industrial Association will present the issue to the state’s Petrochemical Minister Rushikesh Patel on Thursday.

A large number of gas-based units operate in the Shapar-Veraval industrial estate, including foundries, investment casting units and heat-treatment plants, which largely depend on gas as fuel. However, due to the war in West Asia, gas imports have declined, directly affecting industrial operations.

In the first phase, the gas supply company has cut supply by 50 percent. In addition, units consuming more gas than their average monthly usage are being charged three times the normal rate.

The president of the Shapar-Veraval Industrial Association said the average consumption is calculated by the gas supplier based on the previous month’s bill. If consumption exceeds that level in the current month, industries have to bear a three-fold price hike. He added that even if consumption was low last month but rises this month, industrialists are penalized under the current system.

Association office bearers said a representation will be made to Petrochemical Minister Rushikesh Patel seeking immediate intervention, as the condition of industries has become critical due to the war. They warned that if the government does not act quickly, the situation may worsen further.

Container freight charges surge

Industrialists said the war has disrupted shipping routes. The Strait of Hormuz has reportedly been closed due to tensions involving Iran, forcing ships to take longer alternative routes. As a result, container freight charges have increased sharply, adding to the financial burden on industries.

Chemical imports hit, prices rise

The foundry industry depends on imported chemicals and minerals used in the melting process. Scrap metal is melted in furnaces and specific chemicals are added to produce finished products. With imports disrupted due to the conflict, supplies have tightened and traders holding stock have raised prices sharply, increasing production costs for industrial units. DeshGujarat