New Delhi, March 24 The Aluminium Extrusion Manufacturers Association of India (ALEMA) has appealed to the government for urgent relief measures as the industry is struggling with severe shortages of LPG and PNG, triggered by the escalating crisis in the Middle East.
ALEMA has urged the government to implement urgent relief measures, including cuts in interest rates and loan moratoriums.
In a recent letter to the government, ALEMA stated that the conflict in the Middle East has severely disrupted the supply of liquefied petroleum gas (LPG) and piped natural gas (PNG), which are crucial fuels for melting, heating, and aging processes in aluminium extrusion manufacturing.
"Many extrusion units have been forced to shut down or reduce production by 30-70 per cent due to acute shortages and supply prioritization by the Ministry of Petroleum and Natural Gas," the association said.
ALMA represents nearly 250 of India's 450 aluminium extrusion companies, with 90 per cent being MSMEs. According to the association, without intervention, the capital-intensive sector risks defaulting on working capital and term loans.
ALEMA has sought relief similar to measures taken during the COVID-19 era, including reduced interest rates, a moratorium on loan repayments, deferred interest payments, low-cost working capital loans backed by the government, and relaxed CIBIL norms for defaults during this period.
The association emphasized that these "extraordinary circumstances beyond our control" threaten the sector's viability, calling for swift government support to sustain operations and jobs.