LPG shortage may force production halt in Chennai industrial corridors; OEMs ready contingency plans | Chennai News – The Times of India

CHENNAI: Manufacturing units across Tamil Nadu’s key industrial corridors such as Sriperumbudur and Oragadam warn they may be forced to shut operations if the LPG shortage persists for seven to 10 days more.In the auto component industry, LPG is used in several processes, including forging, casting, heat treatment and fabrication. LPG-fired furnaces provide precise and consistent temperature control, crucial for maintaining metallurgical properties. Any disruption in supply of LPG can hit production schedules, particularly for MSME suppliers that form a vital part of OEM supply chains.Industry sources warn that if forging and casting suppliers face prolonged shortages, the disruption could eventually reach larger automobile manufacturers. Leading OEMs have begun drawing up contingency plans. “The situation is somewhat similar to what we faced during Covid. But this time, it is not restrictions but a shortage of a key fuel that powers several manufacturing processes. This could affect the entire manufacturing ecosystem,” said a senior official at a leading auto OEM.Meanwhile, PSU oil major Bharat Petroleum Corporation said in a tweet on Wednesday that available supplies are being rationed to ensure wider coverage, with domestic households being the top priority.Other requests are being reviewed by a joint committee of LPG executive directors from BPCL, IOC and HPCL. Private players supplying LPG to the commercial and industrial sectors declined to comment.