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03/10/2019 04:14pm

MSME suppliers approach UP CM against MVVNL's dubious attitude; seek intervention

image MSME suppliers approach UP CM against MVVNL's dubious attitude; seek intervention

New Delhi, Oct 3 (KNN) Unhappy with Madhyanachal Vidyut Vitran Nigam Ltd's (MVVNL) dubious means to disqualify suppliers and withhold their payments, several Micro Small and Medium Enterprise (MSMEs) suppliers have approached Uttar Pradesh Chief Minister  Yogi Adityanath seeking intervention.

The affected units, most of them being Micro Small & Medium Units (MSMEs), have alleged that Standard Operating Procedures were flouted while drawing samples or during testing.  Then using alibi of failure, the payments of selected suppliers was withheld by MVVNL even of past undisputed supplies against different orders.

The finances of these units have been very adversely affected threatening livelihood of hundreds of people employed in them.

While not many MSMEs are willing to openly challenge the powerful MVVNL, Shashi Cables Ltd, a unit based in Lucknow, did file an affidavit before the Chairman of Uttar Pradesh Power Corporation Limited (UPPCL)- under which the MVVNL operates,   giving full details of fraudulent practices being perpetrated at MVVNL.

However, the office of Chairman UPPCL have neither been able to resolve the issue nor commission an independent enquiry so far. 

According to Shahsi Cables, the sample on the basis of which the testing report was prepared and used to withhold payment of Company’s supplies, does not even belong to it.

“From the beginning, MVVNL officials were hell-bent to fail the sample and attribute it to Shahsi Cables. They didn’t follow the procedures as per BIS Standard and MVVNL Agreement and tarnished the reputation of a respected supplier that has been in advance stage of closing a Foreign Direct Investment (FDI) Agreement with a Belgium based company”,  says V K Agarwal, Managing Director of Shahsi Cables. 

Agarwal is running around to stay his company afloat and save lives of over 200 people employed in its Lucknow plant.  There are around ten suppliers who are facing similar fate.  

“Strangely, the policy being followed at MVVNL is ad hoc as in at least two cases it has released payments related to undisputed supplies to suppliers whose samples had also failed”, says one of the affected MSME owner.

“This clearly shows mala file intention of powers that be in MVVNL who have shown bias against a few suppliers because of ulterior motives”, he added 

“On the one hand the Yogi Government in the State is going all out to attract investment and industry, on the other existing units are being harassed and chased out by officials wielding unbridled powers”, wondered the affected MSME owners.  

 Affected companies have now approached the Chief Minister and have requested for his urgent intervention.

There is widespread resentment among industry associations in the state against rampant ad hocism prevalent in the state especially in the power sector. The matter if remains unresolved is set to create more embarrassment for Yogi Government.


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