Kolkata | New Delhi: Factory disruptions are easing as commercial liquefied petroleum gas (LPG) supplies improve and migrant workers return, aided by companies offering meals or alternative cooking arrangements.
This follows the government's decision on Friday to increase allocation of commercial LPG by another 20 percentage points to 70% of the level that prevailed before the supply squeeze due to the Gulf conflict and Iran's near blockade of the Strait of Hormuz.
The Centre has identified steel, automobiles, textiles, dyes, chemicals and plastics as priority sectors, citing their labour-intensive nature and linkages with other industries.
Also Read: India’s economy shows early strain as Iran war goes on
Companies said LPG availability has improved.
A senior automobile industry executive said constraints at smaller suppliers are beginning to reduce, while larger manufacturers have limited disruption by switching to alternative fuels.
Also Read: 6,000 PNG users surrender LPG connections after govt revises rule amid Iran war
“The higher allocation for non-domestic LPG and inclusion of automobiles as a priority sector is a big help,” he said.
LPG is widely used in industries such as automobiles and electronics for brazing and paint shop operations, and in segments such as food processing.
Companies in these sectors are reporting a gradual return to normal operations.
Improved supplies are helping affected plants return to optimal production, said Mayank Shah, vice president at Parle Products, India’s largest packaged foods company. Companies have asked the government to list packaged foods as one of the priority sectors.
Supplies have risen to about 60% of normal levels and are expected to reach 80% this week, said Ajay DD Singhania, chief executive of Epack Durable, a leading electronics contract manufacturer.
“The new normal is that we have to follow up daily to secure LPG supplies, but availability has improved,” Singhania said. “Workforce retention is no longer a challenge with us offering meals or cooking support. However, production losses over the past three-four weeks are not recoverable.”
A senior auto component industry executive said firms are offering daily meals across shifts or incentives of up to Rs 5,000 to offset higher LPG costs and retain workers. “Attendance has returned to normal,” he said.
Super Plastronics chief executive Avneet Singh Marwah said, “The migrant labour force is back as LPG supply pressures have eased.” The company manufactures televisions under the Kodak, Thomson and Blaupunkt brands.
This follows the government's decision on Friday to increase allocation of commercial LPG by another 20 percentage points to 70% of the level that prevailed before the supply squeeze due to the Gulf conflict and Iran's near blockade of the Strait of Hormuz.
The Centre has identified steel, automobiles, textiles, dyes, chemicals and plastics as priority sectors, citing their labour-intensive nature and linkages with other industries.
Also Read: India’s economy shows early strain as Iran war goes on
Companies said LPG availability has improved.
Priority Sectors’ Allocation up
“Earlier we had visibility of one-two days; now it’s about a week,” said Kamal Nandi, head of the appliances business at Godrej Enterprises. “There are no issues with labour or raw materials, and production is running at full throttle.”A senior automobile industry executive said constraints at smaller suppliers are beginning to reduce, while larger manufacturers have limited disruption by switching to alternative fuels.
Also Read: 6,000 PNG users surrender LPG connections after govt revises rule amid Iran war
“The higher allocation for non-domestic LPG and inclusion of automobiles as a priority sector is a big help,” he said.
LPG is widely used in industries such as automobiles and electronics for brazing and paint shop operations, and in segments such as food processing.
Companies in these sectors are reporting a gradual return to normal operations.
Improved supplies are helping affected plants return to optimal production, said Mayank Shah, vice president at Parle Products, India’s largest packaged foods company. Companies have asked the government to list packaged foods as one of the priority sectors.
Supplies have risen to about 60% of normal levels and are expected to reach 80% this week, said Ajay DD Singhania, chief executive of Epack Durable, a leading electronics contract manufacturer.
“The new normal is that we have to follow up daily to secure LPG supplies, but availability has improved,” Singhania said. “Workforce retention is no longer a challenge with us offering meals or cooking support. However, production losses over the past three-four weeks are not recoverable.”
Improvement in attendance
Several companies have begun providing meals through factory canteens, easing dependence on LPG for cooking. Earlier, supply disruptions had triggered migrant worker absenteeism and a temporary exodus, as rising black market prices and the closure of small eateries and mess kitchens made access to food difficult.A senior auto component industry executive said firms are offering daily meals across shifts or incentives of up to Rs 5,000 to offset higher LPG costs and retain workers. “Attendance has returned to normal,” he said.
Super Plastronics chief executive Avneet Singh Marwah said, “The migrant labour force is back as LPG supply pressures have eased.” The company manufactures televisions under the Kodak, Thomson and Blaupunkt brands.
