Indian Steelmakers Urge Government for Propane Supply Assistance, Sources Say
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Steel Majors Urge Govt Relief Amid Propane Supply Crisis, Production Hit Feared
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Moneycontrol•17-03-2026, 11:17
Steel Majors Urge Govt Relief Amid Propane Supply Crisis, Production Hit Feared
•Indian steel majors, including Tata Steel and JSW Steel, have requested government intervention for propane and butane supply.
•Supply issues stem from the Middle East war and the government's directive to divert propane/butane for domestic LPG under the Essential Commodities Act, 1955.
•Propane is critical for high-heat processes in carbon steel and coated steel production, a high-margin segment for steelmakers.
•The diversion of 80% of supply to priority sectors is severely impacting industrial production, with some units facing potential shutdowns.
•Steel plants currently have limited stock (up to 20 days), and continued restrictions could lead to significant production disruptions.
