GSPCL to supply CNG to Vapi firms

Industrial units in Vapi are likely to get compressed natural gas (CNG) supply from Gujarat State Petroleum Corporation (GSPCL) for their captive power plants by this year end.

GSPCL is planning to bring the gas from Surat to Vapi and companies including Reliance and Gail will distribute it in the local areas. Industrialists believe that this gas supply will help to bring down electricity costs and push up profit margins.

"GSPCL has plans to bring the gas from Surat to Vapi. The work will be completed by December 2006. Once the gas comes, companies like Reliance, Gas Authority of India Limited and Gujarat Gas Company (GGC) will take up the task of internal distribution in the area," said Ashok Shukla, former secretary, Vapi Industries Association.

There are 1,200 units in Vapi industrial estate and 30 per cent of them are equipped with captive power plants.

Industries in the area buy electricity at the rate of Rs 5.50 per unit from Gujarat electricity board. But captive plants that use diesel and furnace oil can generate power at Rs 2.50 to Rs 3.50 per unit. "If CNG is made available, the cost of electricity generation will dip further. This will help the industries to post better profits," Shukla explained.

However, the industries need to upgrade their machineries in captive power plants, he added.

"We are also organising workshops to help industrialists reduce power consumption. This can be done only by upgrading our machinery. We have to have in-house development in order to attain the growth required," he said.

"On an average, Indian industrial units consume three times the amount of electricity consumed by the developed countries for the same kind of production, " he pointed out.