Gujarat government's move to reduce prices of piped natural gas (PNG) for industrial users has given a new lease of life to ceramic industry in Morbi, which was reeling under slowdown and fierce competition from China.
Reduction in production cost as a result of gas price cut is expected to provide a much needed cushion to India's largest cluster of ceramic units to face Chinese onslaught and slowdown to some extent.
Ceramic tile manufacturers of Morbi estimate around 10% decrease in their production cost with gas prices coming down. The Gujarat government had on Wednesday slashed prices of piped natural gas prices by Rs 5 per cubic meter.
The cost of gas for the ceramic industry has come down to Rs 27 per cubic meter effective January 1 from earlier Rs 30 per cubic meter.
The price will further come down by Rs 2 per cubic meter from April 1, 2016.