Several ancillary units of Bharat Heavy Electricals Ltd (BHEL) in Tiruchi have failed to achieve the production targets of 2025-26 because of acute shortage of industrial gases, including LPG.

There are about 500 fabrication units in and around Thuvakudi and Thiruverumbur in Tiruchi district. Many are vendors to the BHEL. It has given orders, ranging from Rs.2.5 crore to Rs.10 crore to several fabrication units to produce various components of boilers. They were doing hectic work until January so as to meet the production deadline for 2025-26.

However, the West Asia crisis put a brake on the operations of fabrication units as they found it difficult to run the show due to acute shortage of industrial gases, which are used in a wide range of industries, which include power, steel making, metal, electronics, and aerospace and others. Industrial gases play a key role in welding, cutting, and other applications fabrication works.

As far as the fabrication units in Tiruchi are concerned, they buy industrial gases from the BIDAS Industrial Services Association, a society formed by a group of companies for supplying various materials, including gases among them. The fabrication units require about 100 tonnes of gas. However, the society could not supply sufficient gas cylinders to its members following short supply from oil companies. It had a cascading effect on the operations of fabrication units, most of them could not take up welding work. Cutting of iron and steel was badly affected.

It has affected the overall production as most units scale down the operation. As a result, they failed to execute the orders placed by BHEL for 2025-26 fiscal. According to a rough estimate, most could execute around 80% of the commitment.

“We would generally operate in full scale in February and March so as to meet the year end deadline. But, we had to scale down to a great extent in March due to acute shortage of industrial gas. It has resulted in low production in 2025-26 financial year,” says R. Kanagasabapathy, an ancillary unit promoter in Tiruverumbur.

There was still no improvement in the supply of gas cylinders. Most units continued to operate with minimum scale in April and May. Production could be accelerated only if the units got sufficient supply of industrial gases.