Urgent Call for Government Intervention in Steel Sector's Gas Supply Crisis

The secondary steel industry is urging government action to resolve industrial gas supply issues, risking the closure of many units. Disruptions threaten production and financial stability, impacting India's infrastructure and manufacturing growth.

The secondary steel industry in India is sounding the alarm over serious disruptions in the supply of industrial gases, which they claim could lead to the shutdown of hundreds of units. The sector heavily relies on Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) for essential processes such as heating and cutting.

In a letter addressed to the Ministry of Steel, the AIIFA Sustainable Steel Manufacturers Association highlighted the severe impact of these gas supply issues on the operational efficiency of secondary steel units. The letter warned that the irregularity and scarcity of gases are leading to reduced production capacity and mounting operational costs.

The association stressed that immediate government intervention is necessary to stabilize the supply chain. They cautioned that prolonged disruptions could jeopardize the financial sustainability of these units, which operate largely within the MSME framework, and hinder the steel industry's overall contribution to the country's infrastructure and manufacturing objectives.