Indian LPG cylinder units face HR coils shortage - Report
BS reported that the manufacturers of LPG cylinders across the country are a harried lot due to short supply of low carbon hot rolled coils to these units by the Indian steelmakers.
Industry sources said “SAIL and TATA Steel, the 2 leading steel producers in the country are the major suppliers of low carbon HR coils to the cylinder manufacturing units.”
Sources said, however, supplies have trickled down significantly over the last couple of months, jeopardizing the operations of the LPG cylinder units.
The LPG cylinder manufacturers alleged that the steel manufacturers who were previously supplying the HR coils directly to the cylinder manufacturing units are now keen on having direct dealings with the oil marketing companies for having greater profit margins.
An industry source said “We have raised the issue of the problem in supply of HR coils before steelmakers like SAIL and TATA Steel but to no avail. The steel manufacturers are only concentrating on their bottomline without caring for the interests of the society.”
This also threatens to throw out of gear the center’s plan to expedite new LPG connections across the country, especially in rural areas. The Centre planned to add 55 million new LPG connections throughout the country by 2015.
According to industry estimates, Indian Oil Corporation Limited has a pan India requirement of 6 million LPG cylinders for a period of 15 months. Meanwhile, Hindustan Petroleum Corporation Limited needs 4 million LPG cylinders per year. The requirement of Bharat Petroleum Corporation Limited stands at 2.318 million LPG cylinders for a period of 10 months
(Sourced form http://www.steelguru.com/news/index/2009/07/31/MTA0ODEx/Indian_LPG_cylinder_units_face_HR_coils_shortage_-_Report.html)
Thursday, July 30, 2009
Indian LPG cylinder units face HR coils shortage - Report
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