Gas in Gujarat

Vol 14, PW 12 (02 Dec 10) News in Brief

Angry cloth mill owners in south Gujarat want to know why BG subsidiary Gujarat Gas continues to sign up new customers when it cannot even supply them their Daily Contracted Quantities (DCQs) of gas.

“Our demand is simple,” says cloth mill owner Vinod Agarwal, “scrap the RSL (Restricted Supply Level) system and let us draw 100% of our gas requirement. Why should we face the RSL There’s no such system anywhere else!” This demand, he adds, was raised at the November 27 meeting of industrial lobby group South Gujarat Textile Processors Association.

For December, the Gujarat Gas RSL is 62% of the DCQ which means customers must pay a premium of Rs5.58/cm ($0.12) for drawing any gas over this level. Adding insult to injury, Gujarat Gas has also raised the base price of its gas supplies to factories this month to Rs13.36/cm ($0.29) from Rs11.50 ($0.25).

Gujarat Gas justifies this move by saying this is its first price-increase in two years.

LNG Summit