New Delhi, March 13 A shortage of industrial gases has negatively impacted several plants, Jindal Stainless MD Abhyuday Jindal said on Friday.
He also sought clarification on the allocation percentage for industrial propane/LPG and natural gas, along with assurance of regular supplies, for the stainless steel industry.
Jindal Stainless is India's largest stainless steel manufacturing company with a capacity of 0.8 million tonnes per annum (MTPA) in Hisar (Haryana) and a 2.2-MTPA facility in Jajpur (Odisha).
Speaking about the impact of the ongoing conflict in the Middle East on his business operations, Jindal said that due to the heavy dependence of stainless steel manufacturing on industrial gases such as propane/LPG and natural gas, several processes across our plants have been adversely affected.
Unlike the conventional steel industry, which largely uses blast furnace and coke oven gases as energy sources, the stainless steel industry follows a scrap-based production route where such gases are not generated internally, he explained.
Given the constraints in fuel availability, plants are operating at a rationalized capacity. Additionally, disruptions in global shipping routes are resulting in vessel diversions, longer transit times, and cargo delays, which are also placing additional pressure on supply chains and margins, the MD said.
"We appreciate that the government is fully aware of the matter and is actively prioritizing fuel allocation for critical sectors," Jindal said, seeking clarification on the allocation percentage for industrial propane/LPG and natural gas, along with assurance of regular supplies, which will be important for the stainless steel industry to plan and optimize operations.
"In the absence of such clarity, we foresee a cascading effect across the industry, the severity of which will depend on how quickly these issues are resolved," he said.