LPG Crisis: 3,000 Industries in Bengaluru’s Peenya Area Face Shutdown Risk

Around 3,000 industries in Bengaluru’s Peenya industrial area face shutdown due to a severe LPG shortage. Erratic gas supply over the past 10 days has disrupted production, raising concerns over salaries, order delays and business survival.

Around 3,000 small and micro industries in Peenya, one of India’s largest industrial hubs, are on the brink of shutdown due to a severe shortage of commercial gas cylinders. Over the past 10 days, the supply has been highly erratic and has worsened significantly in recent days. With operations heavily dependent on a steady gas supply, many units now face the risk of halting production, which could disrupt business continuity and make it difficult to pay workers’ salaries.

3,000 Industries Depend on Gas

Peenya is home to nearly 13,500 industrial units, of which about 3,000 rely on commercial gas for their day-to-day operations. The ongoing shortage has pushed these units into a critical situation.

R. Shivakumar, former president of the Peenya Industries Association, highlighted the gravity of the issue. 

“When we approach gas agencies, they say cylinders will be supplied only as and when they receive stock. They indicate that normalcy will return only after their own supply chain stabilises,” he said.

“We sincerely hope the situation improves soon. Otherwise, we may be forced to shut down operations,” Shivakumar added. “This will create serious challenges in paying salaries. Additionally, we face penalties for failing to deliver orders on time. At present, all gas-dependent industries are under severe strain.”

Lack of Government Intervention

Shivakumar also pointed out that officials from the Industries Department have not yet convened a meeting to address the crisis. 

“There has been no discussion on possible solutions or measures to prevent hardship for industries and their workers,” he said.

Fuel Costs Form a Major Expense

For many small and micro enterprises, fuel accounts for nearly 15% to 30% of total production costs. 

“Any increase in LPG prices or disruption in supply directly impacts production and threatens the sustainability of our businesses,” Shivakumar explained.

Industries Dependent on Gas

Several sectors in Peenya are heavily reliant on commercial gas, including:

• Metal casting and moulding units
• Heat treatment processing units
• Powder coating industries
• Engineering fabrication and welding units
• Food processing units
• Chemical and pharmaceutical manufacturing firms