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Small bangle unit owners demand natural gas subsidy

Post Time:Jan 22,2015Classify:Industry NewsView:373

FIROZABAD: Small-scale glass bangle unit owners have written to Prime Minister Narendra Modi, urging him to reinstate the older system of providing natural gas at subsidized rates, also known as the administered price mechanism (APM).


Currently, bangle manufacturing units in the Taj Trapezium Zone (TTZ) are paying for gas irrespective of their individual consumption every month, meaning that both small and large scale units are paying a uniform rate for gas. In other words, the total amount of gas consumed every month is divided by the number of units in the TTZ. The problem in such a system is that the small scale units tend to overpay, say members of Glass Industrial Syndicate (GIS). They said while the small units incurred losses, the big industrialists are minting money.


Addressing their concern, the GIS members have requested him to revert to a system that prevailed till two years back.


The GIS have also asked for large units to be shifted outside the TTZ to nearby Makhkhanpur. They say their move to the other location will make it easier for the state administration to provide gas to them at a subsidized rate.


District magistrate Vijay Kiran Anand, too, has found merit in demands of the GIS and has written to the petroleum ministry in New Delhi to look into the demands of the small and cottage industries.


The current formulation of gas rates were implemented in July 2012, and since then smaller manufacturers have been demanding a rollback.


According to information, out of 350 industrial units in the TTZ, 80% of them come under small-scale industries and use less than 5,000 standard cubic meters per day (scmd). These units consume just 26% of the total natural gas supplied to the TTZ, while the 20% of heavy units consume 74% of the supply. So under the present UPM rates, small scale industry owners are forced to borne the burden of heavy industries which consume the maximum fuel.


Firozabad has been traditionally manufacturing glass bangles for many decades and over 10 lakh people are directly or indirectly involved in this industry.

Source: http://timesofindia.indiatimes.com/city/agra/SmallAuthor: shangyi

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