MSME suppliers to Railways seek clearance of dues

Coimbatore, Jan 2 (KNN) The Railway Suppliers Association (RASA) has appealed to the Central government to immediately release funds and also clear the arrears for Micro, Small and Medium-scale Enterprises (MSMEs) for the parts supplied.

Reportedly, in a memorandum to the Minister for Railways, the Association said the Railway Board that despite clear instruction to clear the bill payments for MSMEs, officials concerned failed to do so.

''The officials reportedly told the suppliers in many places that they were not having adequate funds,'' the memorandum added.

Officials claimed that funds were not available for six months. But bills submitted about a year ago were also pending. Though there was a delay in the MSMEs getting the payments, they were levied penalties for not supplying the parts on time, the RASA said.

It further added that the MSMEs don't have funds to continue production. Hence, funds should be released for the MSMEs supplying to the Railways and the units should be exempted from all penalties liquidated damages on delayed supply till June this year.