Vapi industrial units may get CNG by July

Vapi industrial units are expected to get the supply of compressed natural gas (CNG) by July. The two firms supplying the gas are Gujarat State Petronet (GSPL) and Gujarat Gas Company (GGCL).

However, till now only 50 units have shown readiness to buy gas but industrialists say that more units will come forward as the supply begins.

"We have letters from 50 industrial units comprising large, medium and small scale units who have shown their readiness to use gas. We expect that once the gas supply is commissioned, the number of units opting for gas will swell and may reach 60-70 per cent of the total firms here in Vapi," said Sharad Thakar, secretary, Vapi Industries Association.

Sources in GSPL said, "The supply to those units which have signed the gas purchase contract with Gujarat State Petroleum Corporaion Limited (GSPC) will immediately begin once the pipelining project finishes somewhere in July".

He added that many have already applied for the contracts and more are expected in the coming months.

Vapi Gujarat Industrial Development Corporation estate (GIDC) which has 1,346 units is dominated by dyes, engineering, textile and pharmaceutical units. However, till now the units have not started fitting the required devices to operate on gas.

"We are being contacted by the gas kit providers, but industries will be going for retrofitting only when the announcement of gas supply is made," he said.

Sources say as the conversion involves big investment, the units may take some more time. According to the industry sources, the units are estimated to consume around .3 million cubic metre of gas on a daily basis. The power generating units and those using furnace oil for boilers will be the big consumers.

"In case of power intensive large scale units, gas will prove more advantageous. However, the impact of gas would vary depending on the type of units," Thakar pointed out.

Presently, the units run on electricity which is supplied by the Gujarat State Electricity Board at a rate of Rs 5.50 per unit.

Thirty per cent of the units in Vapi industrial estate are equipped with captive power plants. "If CNG is made available, the cost of electricity generation will dip. This will help the industries to post better profits," sources added.

However, they said that that the industries need to upgrade their machineries in captive power plants.

GSPL, a subsidiary of Gujarat State Petroleum Corporation (GSPC), is currently constructing the pipeline of 128 kms from Mora to Vapi to enable transmission of gas to GIDC Vapi. L&T was given the contract. Out of this 92 km of pipeline is completed and it is expected that by August transmission of gas will be commissioned.

"GSPL has also commenced laying pipeline in Vapi Industrial Estate for delivery of gas to customers and industries and GSPL will connect to all such customers who wish to enter into necessary agreement," said Thakar. GGCL is also working on the similar lines.

Once the gas supply starts, "it would mean less pollution, more cleanliness and more space available as gas would not require more working space for production", he said.