MSMEs reluctant to switch over to PNG

The Micro, Small and Medium-scale Enterprises (MSMEs) in the manufacturing sector have expressed fears about switching over to Piped Natural Gas (PNG) from commercial LPG cylinders.

The 1.65 crore registered MSMEs are located in multiple clusters across the country and some of the States have PNG for these clusters for decades.

According to Sunil Desai, who runs a MSME enterprise in Vadodara, the units in Vadodara have PNG supply for almost four decades now. “Yet, there is 20% to 50% reduction in supply because of the war. So, what is the guarantee on the consistency of supply for the MSMEs,” he asks.

The calorific value of PNG is slightly lower than LPG. So, the industries that opt for PNG should have technical knowledge on what the gas supply that they are going to get, he adds.

Anil Bhardwaj, secretary general of the Federation of Indian MSMEs, said the MSMEs are unhappy with the goverment’s decision asking commercial LPG cylinder customers to register for PNG to get the additional LPG supply. “Not all areas of an industrial city have PNG infrastructure. Providing this will take time. The MSMEs should have the option of both, LPG and PNG. Though the units may have to make investments internally to change their equipment for PNG use, what is worrying them more is the lack of PNG infrastructure, especially in the NCR and Tamil Nadu,” he added.

President of the Coimbatore District Small Industries Association, M. Karthikeyan, said it will not be economically viable for the micro industries to switch over to PNG as they will have to spend for the infrastructure too. Further, a lot of these industries function out of rented premises, he said.

Sudhakar Sundaravel, national head of the SME doman of the All India Professionals’ Congress (AIPC), said MSMEs are not confined to a defined area such as an industrial area. “The concept maybe good and the industries may be willing. But, do we have the infrastructure ? And when it is done in a hurry, how do we ensure safety standards,” he asks. Further, a lot of MSMEs shift jobs such as welding to different sites and need cylinders for such jobs, he points out.