GAIL says no arbitrary cut in APM gas supplies to small industrial customers

6 lakh plus households in South Gujarat alone to benefit from reallocation of gas in terms of cooking gas supplies

Under pressure from industrial gas users, GAIL Ltd, the country's biggest gas marketer of natural gas, said changes were made in APM gas supply in accordance with the government policy and it was applicable to customers of all units, both large and small industries, priority and non-priority sectors.

Denying that there has been any arbitrary or selective reduction in allocations to small industrial customers in South Gujarat, the company said its own petrochemical units faced 88% cut in gas supply. GAIL said special emphasis was being given to protect the interest of small customers (those presently having allocation of domestic gas up to 50,000SCMD).

Under these guidelines, present level of supply upto a maximum of 5,000SCMD is reserved for small customers and kept out from the purview of thepro-rata cut. This allays any concerns of the small customers, including glass units in South Gujarat.

All the customers impacted by the changes in APM gas allocation were informed in advance and offered alternate gas so that their operations are not hampered suddenly, the company said in a statement. "The revision in gas allocation has been done transparently across all affected customers who have been explained the methodology leading to revised supply quantities.

Some ofthe affected parties have already availed GAIL's offer to utilize alternative gas in view of the reduced quantity of APM gas." There are about 30 customersin South Gujarat, getting the APM gas. Based on the Ministry directive, supply of natural gas, from nominated fields covered under the administered price mechanism (APM), to non-priority sector customers have been curtailed. The APM Gas supply cut envisaged to non-priority sector customers is around 3 to 4 MMSCMD of natural gas, while the cut to South Gujarat customers is to the tune of 0.3 to 0.4 MMSCMD.

The reallocation of this natural gas to CGD entities for South Gujarat alone will enable cooking gas(PNG) supply to more than 6.0 lakh households. Presently, more than 8 MMSCMD ofnatural gas is being supplied to CNG & PNG sector which includes more than 2.0 MMSCMD supplies to CGD entities in Gujarat.