Gujarat Gas Supports Revival of Morbi Ceramic Industry with Assured Gas Supply
Gandhinagar: Gujarat Gas Limited has announced measures to support the revival of the Morbi ceramic industry by ensuring uninterrupted piped natural gas (PNG) supply and stable pricing amid recent geopolitical disruptions.
The company shared the update in a regulatory filing to the BSE Limited and the National Stock Exchange of India.
Industry Hit by Geopolitical Disruptions
The Morbi ceramic cluster witnessed widespread production shutdowns from mid-March 2026 due to:
- Rising raw material costs
- Restrictions on industrial propane usage
- Higher freight expenses
The temporary closure impacted the livelihoods of over 2 lakh workers dependent on the sector.
Diversified Gas Sourcing Ensured Continuous Supply
During the crisis, Gujarat Gas sourced natural gas from non-Middle East markets at spot rates, ensuring uninterrupted supply in line with Government of India directives.
The company also engaged closely with the Morbi Ceramic Association and industry stakeholders to restart operations by:
- Assuring continuous gas availability
- Offering competitive and stable pricing
- Meeting required supply volumes
Rapid Recovery in Industrial Activity
The revival efforts have already shown measurable progress:
- Gas consumption rose from 0.36 mmscmd (serving ~83 units) on March 31, 2026
- To 2.70 mmscmd (serving ~290 units) by April 22, 2026
The company expects the number of active ceramic units to increase to 675–700 units, with gas consumption projected to reach 6–7 mmscmd by May 2026.
Boost to Employment and Manufacturing
The resumption of production is expected to benefit nearly 2 lakh workers affected by the shutdown. Gujarat Gas is also facilitating PNG connections for employee canteen facilities within manufacturing units, strengthening the overall ecosystem.
The company reiterated its commitment to supporting the ceramic industry’s long-term growth and helping the Morbi cluster overcome current challenges.