The decision by gas supplier GAIL (India) Ltd. to install "governors" on compressed natural gas lines in order to reduce consumption has had severe repercussions on the glass industry in Firozabad (Uttar Pradesh). More than 100 glassworks in the town were shut on 21/10/05 in protest at the move. Bal Gupta, former president of the All Indian Glass Federation, & MD of Advance Group of Glass Industries, said the glassworks in Firozabad were among the highest users of gas in the Agra division, despite being permitted to use coal. Gupta said the GAIL authorities had been asking glass units to reduce the pressure of gas, citing the failure of their LNG plant as a reason. He said that according to the contract with GAIL, the glassworks were allowed to make a one-time increase in their gas consumption in the day, which was billable on LNG rates, agreed by GAIL. Now, with the festival season beginning, demand for glass jewelry was in full swing, and at a time when glassworks were thinking of increasing production, they were being forcibly asked by GAIL to reduce their gas consumption. Gupta said "governors" had been installed by GAIL in a few Firozabad glassworks and more were in the process of being installed.
