New Delhi, Aug 14 (KNN) Small Industries Development Bank of India (SIDBI), the nodal bank for micro, small and medium industries in India has joined hand with  FISME, the apex federation for MSMEs, to introduce MSMEs in railways supplies.

The first programme will be held in Lucknow on 22^nd August, 2017 in association with RDSO, Railways.

Railways, the second largest Government buyer after Ministry of Defence, procure about Rs. 80,000 crore of Goods and Services every year.  

Even a 20% share of it, as reserved by the Government for MSMEs will provide a Rs. 16,000 crore market for MSMEs!

The entire concept crystallised during a meeting taken by Suresh Prabhu, Railways Minister with the representatives of MSME bodies, recently.

At the meeting the Railways Minister directed  workable solutions for enhancing participation of MSMEs in Railways in a time bound manner.

Accordingly, SIDBI and Railways planned to organise Buy – Make in India campaign for MSMEs at all India level.

The focus of these programmes will be to make the MSMEs aware about the  special dispensations in Railways procurement for MSMEs and the items available on the table to supply.

Railways have already decided 100% development orders to new firms, which will benefit MSMEs to break the monopoly of multinationals in Railways supply.

Railways have also decided for 20% reservation of regular orders for new firms again to benefit MSMEs.

SIDBI at their end will be offering special financial package   to MSME suppliers under their ‘SRIJAN’ scheme to develop innovative products for Railways.

Commenting on the development, Naveen Jain, entrepreneur from Muzaffarnagar and regular supplier to Railways mentioned that the initiative is an welcome step.

Railways should open the gate wider for MSMEs by simplifying the registration process and lower the upfront fees for registration and testing, Jain quipped.

According to Anil Bhardwaj, Secretary General, FISME, the multiplicity of Standards is a major barrier for MSMEs to conform and supply Railways.

Railways should review their standardisation process and minimise the number of essential standards, if they want to provide a level playing field, commented Bhardwaj.

The forthcoming programme at Lucknow may act as the curtain raiser for joining the Railways market. (KNN/ DB)