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Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

Morbi Ceramic Industry Faces Shutdown Risk

Why in the News

The ceramic industry in Morbi, Gujarat may face a shutdown due to disruptions in natural gas and propane supplies following escalating conflict in West Asia and the closure of the Strait of Hormuz.

Importance of Morbi Ceramic Cluster

  • Morbi is India’s largest ceramic manufacturing hub.
  • Around 600 ceramic units operate in the region.
  • The industry employs 2–4 lakh workers directly and indirectly.
  • Produces tiles, sanitaryware and vitrified products exported globally.

Why the Industry is Affected

  • Dependence on Gas-Based Fuel
    • Ceramic units rely heavily on propane and natural gas for: Firing kilns and Drying processes. About 80% of units use propane as the main fuel.
  • Disruption of Energy Supplies
    • Gas shipments from Gulf countries are stuck due to tensions involving Iran, Israel, and the United States. Closure or disruption in the Strait of Hormuz, a critical global shipping route, has interrupted supplies.
  • Limited Fuel Stocks
    • Propane stocks: 2–4 days.
    • Natural gas (CNG) supplies: about one week.
    • If supplies do not resume soon, the industry may suspend operations within 7–10 days.
[2024] Consider the following statements: Statement-I: Sumed pipeline is a strategic route for Persian Gulf oil and natural gas shipments to Europe. Statement-II: Sumed pipeline connects the Red Sea with the Mediterranean Sea. Which one of the following is correct in respect of the above statements? (a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I (b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I (c) Statement-I is correct, but Statement-II is incorrect (d) Statement-I is incorrect, but Statement-II is correct

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