Ceramics industry wants D6 gas

Vol 13, PW 3 (16 Jul 09) News in Brief

Ceramics manufacturers in Gujarat have abandoned a widely publicised plan to bid for a gas block in the forthcoming NELP-VIII licensing round.

“You need very, very deep pockets for this and frankly we might fall short of expectations,â€‌ admits Veljibhai Patel, president of the 250-membher strong Morbi Ceramic Manufacturers Association. Instead, Patel says ceramics manufacturers in Gujarat now want D6 gas, which they believe would be cheaper than the gas they currently source from GSPC Gas at Rs14.90/cubic metre ex-taxes.

“If we had our own gas block we could save Rs3/cubic metre,â€‌ claims Patel. “But if we get D6 gas, we could save Rs4.40/cubic metre.

People tell us we can get D6 gas at Rs10.50/cubic metre.â€‌ In late June a five-member ceramics delegation from Gujarat led by local lawmaker Tankara Mohan Kundaliya met oil minister Murli Deora in Delhi with a plea for D6 gas but was told that the $1bn ceramics industry in India is not a priority sector.

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