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  Metros   Mumbai  04 Dec 2016  Cash crunch: Be ready for LPG cylinder shortage

Cash crunch: Be ready for LPG cylinder shortage

THE ASIAN AGE. | VIVEK BHAVSAR
Published : Dec 4, 2016, 6:50 am IST
Updated : Dec 4, 2016, 7:03 am IST

Western India Bulk LPG Transport Association, even banks have not been able to provide sufficient liquidity to help sustain the industry.

The transport industry involved in LPG products has been badly affected by demonetisation.
 The transport industry involved in LPG products has been badly affected by demonetisation.

Mumbai: A likely shortage of LPG cylinders is imminent, as the transport industry involved in liquefied petroleum products has been badly affected by demonetisation. According to Western India Bulk LPG Transport Association, even banks have not been able to provide sufficient liquidity to help sustain the industry.

Bhushan Wadhwani, owner of Balaji Transport Chembur, said, “I have around 100 vehicles that convey bulk liquefied petroleum products from the bottling plants of Hindustan Petroleum Company limited (HPCL), Bharat Petroleum company limited (BPCL) and Indian Oil corporation to other parts of the state.” “We transport LPG through tanks having capacity of 18,000 kg gas from Uran, Visakhapatnam, Jabalpur, Hazira to Jalgaon, Wai, chakan, Shikrapur and Aurangabad. I need at least Rs 90,000 per day or Rs 7 lakh per week to facilitate the same. However, banks are not providing even Rs 3 lakh.”

 

According to Reserve Bank of India guidelines, one can withdraw Rs 50,000 per week from the current account and Rs 24,000 from the saving account. “I have two current accounts and three saving accounts at HDFC. When I tried to get the cash, the bank refused to service my need,” he further added.

On the one hand, banks are not providing cash, and on the other hand, tollbooths are not accepting Rs 500 notes. My drivers get stuck on highways,” he said. Claiming the situation could exacerbate, Mr Wadhwani said shortage of LPG cylinders would directly affect the common people.

Tags: demonetisation, lpg cylinders, hpcl, bpcl
Location: India, Maharashtra, Mumbai (Bombay)