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Gujarat govt announces 16% discount in gas bill for ceramic units

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  • The announcement will benefit 1160 units in Morbi, Surendranagar and Sabarkantha.
  • The state has offered additional Rs2.5 per SCM discount in gas bills for such units.
  • Earlier the state had given Rs2 discount per SCM.

Gujarat Chief Minister Vijay Rupani on Tuesday announced a 16% discount in gas bills for ceramic units in the state.

The government announced a further discount of Rs2.50 per standard cubic metre (SCM) in the gas bill for gas supplied by Gujarat Gas Company Limited and Sabarmati Gas Limited. This will help over 1,160 units in Morbi, Surendranagar and Sabarkantha.

 

State-run Gujarat Gas Ltd supplies 6.5 million SCM per day of piped natural gas to ceramic clusters in Morbi, Surendranagar and Sabarkantha. Gas prices account for up to 35% of the overall production cost of ceramic units.

Govt gave a discount earlier too

Earlier, the government had given Rs2 per SCM discount for gas bills to the units. The additional discount was announced on Tuesday after a high-level meeting with officials.

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The decision is likely to provide a cost advantage to ceramic units in the state and allow them to compete in the world market and increase exports. It will also help them take on China which accounts for 50% to 60% of the ceramic market in the world.

The decision comes in the wake of Ceramic industry representatives meeting the chief minister. The industry has been severely hit by the COVID-19 pandemic.

After the recent concession of Rs2.5 in the gas bill, the total discount now comes to Rs4.5 per SCM. This means gas will be available at Rs24.91 per SCM for the ceramic units. This is 16% lower than the gas price in May 2020.

The Federation of Industries and other ceramic units in the state have welcomed the decision.

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