Govt likely to suspend gas supply to textile industry for 15 days

RECORDER REPORT

LAHORE: Despite all the opposition from the owners and workers, the government is likely to cut gas supply to textile industry for at least 15 days anytime from now onwards.

According to the sources, gas supply to the textile industry is likely to be disconnected in order to improve power generation through gas-based Independent Power Producers (IPPs).

It may be noted that the government has already cut gas supply to the fertiliser industry for the same purpose.

Short energy supply has crippled textile machinery across the value chain, bringing down its exports by over 30 percent during current fiscal year. Besides, a 30 percent capacity closure has rendered over one million textile workers jobless since November 2007. The law and order situation in textile-relating cities is triggering fast with increase in job losses. Those having been retained by the mills yet are not being paid salaries in time. Majority of mills are running on a carryover of two months salary of the retained staff. The daily wagers are the worst hit, as they spend most of their time outside mill gate in a hope that they would be hired by the management. However, majority of them turn back their homes penniless because the mills are running short of capacity and not able to accommodate well-trained workers.

A dire impact of the awkward situation would be on the cotton farmers, who are clueless about uplifting of cotton at appropriate rates, especially when weather experts are predicting floods ahead.

Unfortunately, the central government has failed to ensure prudent usage of gas in the country. Demand for gas as a cheap fuel is on the rise and domestic, transport and restaurants are not ready to lose their share at any cost, even the industrial downfall of the country.

It is high time that the consumers' forums and labour organizations become active to pressurise the government for prudent usage of gas in the country. According to the textile industry circles, the industry was not in a position to fight with CNG consumers, domestic users and the restaurants racket for gas. They said the CNG pump owners association is more active than the CNG consumers and are not ready to compromise with the opportunity of making profits out of cheap fuel.

Meanwhile, the textile mills running on electricity are of the view that each unit of electricity costs them greater against the gas-fed mills. But they seem clueless when they are pointed out that 90 percent of the textile mills have shifted their operations on Captive Power Plants.

Gas is the most sought-after fuel in the economy. Right from industrialists to power producers and the common man, everyone is looking for its abundant availability by all ways and means. A change in energy policy may be the solution to this problem.