Approximately 7,500 micro, small, and medium-sized enterprises in the Pimpri-Chinchwad industrial areas have either ceased operations or are on the verge of running out of industrial gas supplies due to a halt in LPG gas deliveries to industries.

Many of these auto ancillary units supply components to automotive manufacturers or auto component makers. They primarily consist of fabrication units, powder-coating facilities, cathodic electrodeposition factories, and continuous-process industries. According to Sandeep Belsare, president of the Pimpri-Chinchwad Small Industries Association, there are around 15,000 units in the region, and nearly 50% have been affected.

Belsare’s own company, Shree Engineers, is running low on LPG. His unit requires three 21-kg cylinders daily and previously operated two shifts. Currently, it is operating for half a day and has only two cylinders left in stock. The only option is investing in air plasma cutting machines, which cost between Rs 12-15 lakhs and would also require compressors, making it unviable.

Belsare’s units face financial and production losses

Belsare warns that these units will face production and financial losses. If gas supplies are not resumed, they may be forced to lay off workers. LPG is typically supplied to industries that order between 10 and 425 kg of gas cylinders.

A representative from a gas supplier agency in the Pimpri-Chinchwad area reported that public sector oil companies have halted refilling. Additionally, private gas suppliers are depleting their stock as shipments have not arrived in India. Notably, Super Gas, Total Gas, and Aegis are among the major suppliers, with two already out of stock and the third continuing deliveries only until remaining supplies last. While these units could switch from electricity to diesel, this would require additional investments and regulatory approvals, and the entire process could take two to three months.

The supply of petrochemical products, including those for plastic manufacturers, has also been impacted, as it relies on the Middle Eastern market, said. Prashant Girbane, director general of the Mahratta Chambers of Commerce, Industries, and Agriculture, said. The agriculture export segment in the region that targets the Middle East has suffered as well, and stakeholders hope for a stabilisation of the situation soon, Girbane said.