UditVani, Jamshedpur: A deepening shortage of commercial LPG has begun to choke industrial activity in the Adityapur industrial area—one of Asia’s largest manufacturing hubs—triggering alarm across the MSME ecosystem and prompting urgent appeals for government intervention.
Leading industrialist and MD of RSB Group S K Behera has publicly flagged the crisis in a direct appeal to Union Petroleum Minister Hardeep Singh Puri, highlighting a policy bottleneck that has left industries caught in a debilitating transition loop between LPG and piped natural gas (PNG).
In a strongly worded tweet, the industrialist pointed to the paradox wherein LPG supply is increasingly being linked to mandatory PNG migration, even as PNG connections remain inaccessible or pending for a large number of units.
Policy Gridlock Leaves MSMEs in Limbo
At the heart of the crisis lies a disconnect between fuel transition policy and on-ground execution. Industries report that oil marketing companies, including Indian Oil Corporation, are tightening LPG allocations while pushing units towards PNG adoption.
However, delays and constraints in PNG network expansion by GAIL have created a vacuum—effectively leaving many enterprises without any viable fuel source.
This has placed hundreds of MSMEs in an untenable position, with production lines slowing or halting altogether.
Production Cuts, Job Risks Mount
Industry bodies estimate that nearly 1,500 industrial units in the Adityapur belt have already curtailed operations, with some facing temporary shutdowns due to erratic LPG supply.
The industrial zone, which directly employs over 200,000 workers, now faces a cascading impact on jobs, ancillary industries, and supply chains linked to major manufacturers.
The Singhbhum Chamber of Commerce and Industry (SCCI) has formally urged district administrations in East Singhbhum and Seraikela-Kharsawan to step in and ensure uninterrupted LPG availability for industrial consumers.
LPG: A Critical Industrial Input, Not a Substitute
For many MSMEs in Adityapur, LPG is not merely a fuel but a core production input—integral to processes such as heat treatment, casting, forging, coating, and fabrication. The absence of consistent supply brings manufacturing to a standstill.
An Adityapur-based entrepreneur, speaking on the condition of anonymity, said,
“This is not just a supply issue—it is a survival issue. Without LPG, our furnaces go cold and our workers go idle. We cannot switch fuels overnight.”
Another industrial unit owner echoed the sentiment, stating,
“We are being asked to migrate to PNG, but the infrastructure simply does not exist for us yet. In the meantime, LPG supply is shrinking. We are trapped in a policy gap.”
Global Pressures Add to Local Strain
The crisis has been exacerbated by volatility in global energy markets, particularly due to ongoing tensions in West Asia, which have disrupted supply chains and driven up input costs. Industry representatives warn that without immediate corrective measures, the region’s industrial competitiveness could suffer long-term damage.
Suresh Sonthalia, Joint Secretary of Confederation of All India Traders, said that the ongoing tensions in West Asia pose a serious and immediate risk to India’s trade ecosystem, particularly for MSMEs and small businesses that operate on tight margins and limited financial buffers. “Rising input costs, disrupted supply chains, and increasing freight and insurance expenses are likely to exert significant pressure on working capital, erode profitability, and weaken the overall resilience of small enterprises. If not addressed proactively, these challenges could cascade into reduced production, delayed deliveries, and potential job losses,” he noted.
He further emphasised that timely and calibrated policy intervention would be crucial to safeguard economic stability.
Call for Immediate Intervention and Transition Roadmap
Stakeholders are now calling for a clear and time-bound transition mechanism that ensures continuity of fuel supply during the shift from LPG to PNG.
Key demands include restoration of stable LPG allocations, expedited PNG connectivity, and better coordination between oil companies and government agencies.
With production slowing and livelihoods at stake, the Adityapur industrial belt stands at a critical juncture—awaiting swift policy clarity to prevent a wider economic fallout.
