RDSO Lucknow, overrule the Board’s order to continue with categorisation of vendors, MSMEs suffering

New Delhi, Oct 5 (KNN) The Micro, Small and Medium Enterprises (MSMEs) involved with the railways are suffering due to the gap between the order of the railway board and the implementation by the Research Design and Standards Organization (RDSO).

The  Railway Board, by a recent order has merged all categories of vendor to a single suppliers platform with equal opportunities for Railways orders.

However, the technical arm of the Railways, RDSO Lucknow, has overruled the Board’s order and continuing with categorisation of vendors into, developmental, regular etc.

Talking to KNN, Amit Jain of Dayachand Engineering Industries explained the situation.

He informed that earlier there was categorization for the vendors in the railways. Initially the vendor was to apply for the Part II category, as development vendors, following which it can go for the Part I category.

After much thought, the railway board issued order stating that there wouldn’t be any categorization of the  vendors. Despite an order by the railway board in place, the subordinate body of the same department- RDSO Lucknow has again reintroduced the categorization of vendors.

Following this, Jain informed that the MSMEs approached the railway board seeking clarification over the matter, to which the board replied that there will be no category of developmental vendors, yet RDSO continues to negate the order.

With such situation prevailing, it is becoming increasingly difficult for the Micro, Small and medium Enterprises to do business with the department.  The gap between the order and its implementation is becoming a big concern for the MSMEs that operate and manufacture items for the railway department.

Experts and different stakeholders view the issue as a matter of grave concern, especially at a time when the government is pushing and campaigning for the Make in India campaign.

Also it proves to be a big hurdle for realizing the ease of doing business claim of the government.

Since Indian Railways is the largest civil establishment of the Government providing due opportunities to MSME suppliers, such ecosystem is proving to be fatal for the MSMEs. (KNN/ DA)