TL;DR
The Indian government has increased commercial LPG allocations by 20% to 70% of pre-crisis levels, prioritizing critical sectors like automotive to alleviate supply chain disruptions.
The Indian government has taken measures to mitigate the impact of ongoing gas supply disruptions on key industries, including the automotive sector, by increasing commercial LPG allocations. On Friday, the government boosted LPG supplies by 20%, aiming to reach 70% of pre-crisis levels. This initiative prioritizes labor-intensive sectors such as steel, automobiles, textiles, dyes, chemicals, and plastics, which are deemed critical for broader economic activity.
This move is particularly crucial for auto component manufacturers, especially forging and casting units, who have been maintaining production, with some even transitioning to in-house solar-powered electrical heating. While larger firms have found ways to navigate the situation, smaller firms, heavily dependent on LPG, have felt a greater strain. The increased allocation is expected to cushion these industries from further production risks and ensure consistent energy availability, especially for sectors with seasonal demand.
