Aluminium extrusion industry grappling with severe LPG, PNG shortages amid West Asia crisis

New Delhi: The Aluminium Extrusion Manufacturers Association of India (ALEMA) has urged the government for urgent relief measures as the industry is grappling with severe LPG and PNG shortages triggered by the escalating West Asia crisis.

The ALEMA has urged the government to implement urgent relief measures, including interest rate cuts and loan moratoriums.

ALEMA, in a recent letter to the government, said the conflict in West Asia has severely disrupted supplies of liquefied petroleum gas (LPG) and piped natural gas (PNG), critical fuels for melting, heating and ageing processes in aluminium extrusion manufacturing.


"Many extrusion units have been compelled to shut down or reduce production by 30-70 per cent due to acute shortages and supply prioritisation by the Ministry of Petroleum and Natural Gas," the association said.

ALMA represents nearly 250 of India's 450 aluminium extrusion companies -- with 90 per cent being MSMEs. According to the association, without intervention, the capital-intensive sector risks defaulting on working capital and term loans.

ALEMA has sought relief like Covid-era measures, including reduced interest rates, a moratorium on term loan repayments, deferred interest payments, government-backed low-cost working capital loans, and relaxed CIBIL norms for defaults in this period.

The association emphasised that these "extraordinary circumstances beyond our control" threaten the sector's viability, calling for swift government support to sustain operations and jobs.