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Firozabad glass bangle units want natural gas subsidy

Updated: Jan 22, 2015 03:08:18pm
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New Delhi, Jan 22 (KNN)  Makers of glass bangles in Firozabad want the government to revert to the older system of providing gas at subsidised rates.  They have written to the Prime Minister in this regard, according to a Times of India report.

As of now, the bangle making units, belonging to the Taj Trapezium Zone (TTZ) are paying for natural gas a certain amount, irrespective of their actual usage.   What this means is that both small units and large units are paying the same amount as the total amount is divided equally among all units.

Under the circumstances, the glass bangle units have asked the government to revert to the older system of providing natural gas at subsidized rates, also known as the administered price mechanism (APM). 

The current system of payment for natural gas was implemented in July 2012 and ever since then, the smaller manufacturers have been demanding a rollback, the media report said. 

According to the report, TTZ is home to 350 industrial units of which 80 per cent are small scale, using less than 5000 standard cubic metres per day.  These units use just 26 per cent of the total natural gas supplied to the TTZ while 20 per cent of the large units consume as much as 74 per cent of the supply.  This has resulted in a major cost burden for the small units.

Over 10 lakh people in Firozabad have been traditionally manufacturing glass bangles for several decades.  (KNN Bureau)

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