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60% of ceramic enterprises resumed production and received ¥28 million subsidy from the Indian government

[22/06/2020]

Jun. 22, 2020 - Nilesh Jetparia, chairman of the Morbi Ceramics Alliance, revealed that at present, 60% of ceramic factories in Morbi have resumed production, but the output is still limited. Nilesh expects that by the end of June, 70% of Morbi's ceramic plants will resume production, and Morbi's natural gas demand will rise to 5 million cubic meters per day.

 

Before 2019, ceramic factories used coal gasifier to produce ceramic bricks, which caused serious pollution to the local air.

 

Under the government's compulsory control, all the ceramic factories in Morbi have switched to natural gas production. It is reported that there is a huge demand for natural gas in the Morbi ceramic production areas.

 

Currently, the price of natural gas in India is about 29.5 rupees/m³ (about RMB 2.74 yuan/m³), and the price of propane gas is 24.5 rupees/m³ (about RMB 2.28 yuan/m³). Relevant government officials in India stated that Gujarat Province will begin to reduce gas prices for Morbi ceramic enterprises from July by a 15% reduction. After the reduction, the prices will be approximately 2.33 yuan/m³ and 1.94 yuan/m³, respectively.

 

In addition, it is reported that the Gujarat government has allocated 300 million rupees (about 27.88 million yuan) to subsidize the use of natural gas in Morbi.

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