Aluminium Extrusion Industry Faces Fuel Shortages Amid Middle East Crisis

Aluminium Extrusion Industry Seeks Urgent Government Relief Amid LPG, PNG Shortages​

Supply Disruptions Trigger Production Cuts Across Sector​

New Delhi, March 24: The Aluminium Extrusion Manufacturers Association of India (ALEMA) has urged the government to introduce immediate relief measures as the industry grapples with a severe shortage of key fuels, liquefied petroleum gas (LPG) and piped natural gas (PNG), following escalating tensions in the Middle East.

In a communication to the government, ALEMA highlighted that the ongoing conflict has significantly disrupted fuel supplies critical for aluminium extrusion processes such as melting, heating, and aging.

Units Shut or Operating at Reduced Capacity​

The association stated that the shortage has forced many manufacturing units to either shut operations or scale down production by 30 per cent to 70 per cent. It attributed the situation to acute supply constraints and prioritization of gas allocation by the Ministry of Petroleum and Natural Gas.

MSME-Driven Sector Faces Financial Stress​

ALEMA represents around 250 of India’s 450 aluminium extrusion companies, with nearly 90 per cent classified as micro, small, and medium enterprises (MSMEs). The association warned that the capital-intensive nature of the business, combined with the current disruption, could lead to defaults on working capital and term loans if timely support is not provided.

Industry Seeks COVID-Like Relief Measures​

To address the crisis, ALEMA has requested the government to extend relief measures similar to those implemented during the COVID-19 period. These include reduction in interest rates, moratorium on loan repayments, deferment of interest obligations, access to low-cost working capital backed by government support, and relaxation of CIBIL norms for borrowers impacted during this period.

Calls for Immediate Intervention​

Describing the situation as beyond the control of industry players, ALEMA stressed that the ongoing crisis poses a serious threat to the sector’s sustainability and employment. The association has called for swift government intervention to stabilize operations and safeguard the industry.