Indian sponge iron producers suffer from natural gas shortage
Indian sponge iron producers are stated to be suffering from shortage of natural gas as GAIL India Limited, the sole supplier of natural gas, has reduced supply of the subject material to steel sector by 50%. It is stated that production at Hazira, sponge iron plant of Essar Steel, has decreased by 61% due to shortage of natural gas. Likewise, production at Ispat and Vikram Steel has decreased by 53% and 42% respectively. Essar, Ispat and Vikram produce 50% of sponge iron in the country. When this figure is taken into consideration, it can be said that the decreases will severely affect Indian steel industry. Certain analysts state that the situation may even lead to closures of the mills.