Ludhiana MSMEs feel led down as DIPP recommends them to import reflectors to meet norms

New Delhi, June 20 (KNN) Inspite of the relentless efforts by Ludhiana based cycle manufacturers to convince DIPP and Road Safety Council to extend the deadline beyond 1st July, 2016 for installing reflectors in the bicycles manufactured in India, they get  clear cut instructions to fast-track their orders to foreign companies in order to meet the norms.

In this context, United Cycle & Parts Manufacturers Association (UCPMA) held a meeting with MSME Ministry and DIPP recently over the recent Supreme Court ruling to install reflectors.

The Supreme Court’s Committee on Road Safety has recently made it mandatory to install 10 reflectors qualifying ISO 6742-2 standards per bicycle.

It recommended installing four reflectors on pedals, two reflectors on front and rear wheel each, one reflector on lamp bracket and one on the rear mudguard latest by 1st of July 2016.

The standardised ISO 6742-2 reflectors which are not produced by any Indian company has to be imported from global manufacturers like Cateye and Satellite in Japan and China respectively. These companies covering 90% market share of reflector production require time to process the orders place by Indian bicycle MSMEs.

Moreover, as claimed by Rajeev Jain none of the small bicycle manufacturers have been able to meet the deadline despite efforts.

According to him, only the big bulls of bicycle industry that had capital and an upper hand strong enough to import have been successful in abiding by the proposed deadline.

Jain told KNN that “Shailendra Singh , Joint Secretary DIPP (Department of Industrial Policy and Promotion) did not consider the issues of MSMEs, most of which are already out of business as their reflectors are no longer demanded by the cycle industries. Besides, they lack the capital, infrastructure, technology and expertise that cannot be piled overnight to manufacture the standardised ones.”

Jain and his team apart from seeking for an extension also came up with some alternatives like 3M reflective tapes,  reflective jackets etc. which could be used till the time all the MSMEs come through with the installation. But none of the proposals were considered by the other side.

These reflectors will cost around Rs 90 per bicycle and Ludhiana bicycle manufacturing of around 1.5 crore bicycles requires an outlay of Rs.140 crores or more to process the installation which itself is a huge challenge.

Now for the MSMEs which are already handcuffed with insufficient funds, this is not feasible at all, said the entrepreneur.

“But keeping all such constraints aside, this is a direct assault on the programme like Make in India,” Jain added.

He mentioned the fact that the MSME Ministry, however, was against the reflector imports from China and other foreign players keeping in mind the very close deadline and the financial state of the MSME sector.

The cycle manufacturers of Ludhiana, who have been seeking appointment with Nitin Gadakari, Minister of Road Transport and Highways, have sought his intervention into the matter to save the dying units in the region. (KNN/ GK)