PUNE: Industries in parts of Pune district have started feeling the impact of an LPG shortage triggered by the ongoing conflict in the Middle East, as several units in the engineering and powder-coating sectors have already reported disruptions in production.A powder-coating unit in Chakan, Mass Precision Pvt Ltd, which employs around 250 workers, has halted operations since Friday due to the unavailability of LPG. Rajesh Deodhare, owner of the firm, told TOI that although employees continue to report to work, production has come to a standstill due to the shortage of fuel.
“I have been trying to procure LPG for the past four days, but distributors say there is no stock available for commercial consumers,” he said. Deodhare added that his firm has a monthly turnover of about Rs 7–8 crore and is incurring losses of nearly Rs 25 lakh for every day production remains suspended.“We faced a similar situation during Covid when production remained shut for nearly three months. Even when the business stops, we still have to pay workers’ salaries and service our loan EMIs,” he said, adding that the situation could worsen if supplies are not restored soon.The situation is similar at Sahyadri Industries, another unit in Chakan engaged in manufacturing fabrication components, machined parts and sheet metal assemblies. Jaidev Akkalkote, owner of the firm, said production had been halted four days ago after LPG supplies ran out. “Around 10 to 15 workers are currently doing cleaning work inside the unit as there is no production activity,” he said.Both Akkalkote and Deodhare said they continue to pay their workers despite the shutdown as skilled labour is difficult to replace once employees leave.The Union Ministry of Petroleum and Natural Gas has restricted LPG supply to non-essential users, prioritising domestic and emergency requirements. In a post on X on Monday, the ministry said domestic LPG supply to households has been prioritised and a 25-day inter-booking period has been introduced to prevent hoarding or black marketing.It added that imported LPG for non-domestic use is being prioritised for essential sectors such as hospitals and educational institutions.“For LPG supply to other non-domestic sectors, a committee of three EDs (executive directors) of OMCs (Oil Marketing companies) have been constituted to review the representations for LPG supply to restaurants/hotels/other industries” the ministry said.A senior official from Bharat Petroleum Corporation Limited (BPCL), speaking on condition of anonymity, told TOI that requests for bulk LPG supply from industries are currently being scrutinised. “Distribution is being approved only after verifying that the demand is linked to essential or emergency services,” the official said.Industrial units that rely heavily on LPG said their stock usually lasts only three to four days, raising concerns that more units could face shutdowns if fresh supplies are not restored soon.Industry representatives said some units are exploring alternatives such as electric-powered ovens, but switching to such systems involves significant cost and installation of new machinery could take at least a month.The situation was same in steel industry. “We have been seeking some intervention as operating the furnace without fuel supply will be a major problem,” Sakshi Katti, an executive at a steel producing unit in Chakan, said.The foundry has a total capacity of 200 tonnes and is fully operated on LPG. It requires around 20 cylinders every two weeks. The manufacturing unit is left with only one week of LPG stock and is frantically trying to get hold of some supply. “So far, we have not received a positive reply from anyone,” Sakshi said. The only other option is to operate the furnace on diesel which is very costly. Besides, the factory switched from diesel to LPG operated furnace to save costs.Sandip Belsare, an engineering firm owner in Bhosari and president of the Pimpri Chinchwad Small Scale Industries Association, said more than half of the industries in the region rely on LPG. “Some units are exploring alternatives, but it is a costly and difficult process. I have ordered two electric-operated plasma machines for my own firm to explore an alternative,” he said.Kalyan Dekhale, owner of Rudra Veer Technologies, a powder-coating unit in Bhosari, said his firm has LPG stock that will last another two to three days. “If the supply is not restored, we too will have to halt operations. I have two units in Bhosari and Chakan employing around 70 to 80 workers,” he said.
