Aluminium extruders seek loan relief | Ahmedabad News

Ahmedabad: Aluminium extrusion manufacturers in Gujarat have urged govt to immediately extend a moratorium and other financial relief measures, stating that the industry is facing an unprecedented crisis triggered by disrupted gas supply, falling production levels and steep increases in aluminium scrap prices amid the ongoing West Asia conflict. Gujarat houses nearly 100 extrusion units with a collective installed capacity of about 50,000 tonnes per month. Industry representatives say the situation on the ground has deteriorated sharply over the past few months. With industrial gas supply becoming erratic and prohibitively expensive, as well as raw material costs rising substantially, close to 10 units have already stopped production while several others are running at less than half their capacity. This supply disruption has had a cascading impact on dependent sectors, particularly real estate and construction. Prices of aluminium sections used in doors, windows and structural applications have risen because of reduced production and high-cost inputs, putting additional pressure on project costs. According to Jitendra Chopra, president of the Aluminium Extrusion Manufacturers’ Association of India (ALEMAI), Gujarat’s extrusion industry is operating far below its potential. “The state has a total installed capacity of 50,000 tonnes per month across around 100 units. Due to the geopolitical crisis and disrupted industrial gas supply, current production is only about 15,000 tonnes. Several units have stopped manufacturing, while many are functioning just three to four days a week. Ahmedabad and nearby regions, which together host about 50 units, are among the worst affected. Scrap availability is also severely constrained,” he said. LPG and PNG are essential fuels for key manufacturing processes such as melting, heating, and ageing. The association noted that restricted allocation and inconsistent delivery have forced many units to curtail operations by 30% to 70%, adding that the gas shortage is now the biggest bottleneck for the industry’s survival. Pratik Shah, director of Avirat Metals Pvt Ltd, said his company’s operations have been substantially hit. “We have a manufacturing capacity of 500 tonnes per month; however, due to a shortage of gas at standard rates, we had to shut down one production line for 18 days. The remaining line is currently operating at only half capacity,” he said. In a representation to govt, ALEMAI said the capital-intensive sector is facing a liquidity strain as units continue to service debt despite reduced operations. It relief measures like during Covid such as lower interest rates, a moratorium on repayments, deferred interest liabilities, affordable short-term working capital backed by govt support and relaxation in CIBIL rules.