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BHEL ancillaries fighting for their share of work

Updated: Sep 25, 2013 05:48:48pm
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Visakhapatnam, Sept 25 (KNN)  Small industries in Vishakhapatnam have asked BHPV, a subsidiary unit of BHEL to provide them regular orders of components and other equipment.

“BHPV has not been giving us regular orders and we are fighting for our share of work.  We want 20 per cent of the work to be given to local SMEs on a regular basis,” said Visakha Autonagar Small Scale Industrialists Welfare Association (VASSIWA) President, Ramakrishna Narappareddy.

VASSIWA is an association of BHEL ancillaries.  Heavy Plates and Vessels Plant (HPVP) merged with BHEL in 2008 to become BHPV, the 17th division of BHEL.
Narappareddy also said that delivery of raw material was always delayed, as also payment after submission of invoices. 

“Generally, payments are made in 21 days.  However, there is an abnormal delay of 3-4 months for payments after submission of invoices,” he said, adding that it caused unnecessary financial problems for small units.

The association has also asked BHPV to waive off the Liquidated Damages clause to help SME units.

“Owing to power cuts, power holidays, restriction of power usage after six pm and public holidays, our delivery scheduled is delayed at times; and the Liquidated Damages clause causes a loss of 5-10 per cent,” the Association President said.

We have therefore asked for special consideration not to implement the clause, he added.

According to the central government public procurement policy for micro and small enterprises, “Every Central Ministry/Department/PSU shall set procurement goal of minimum 20 per cent of the total annual purchases of the products or services produced or rendered by MSEs.”

Further, out of 20 per cent target of annual procurement from MSEs, a sub-target of 4 per cent (i.e., 20 per cent out of 20 per cent) will be earmarked for procurement from MSEs owned by SC/ST entrepreneurs. The overall target of 20 per cent is proposed to be made mandatory at the end of 3 years.  (KNN/ES)
 

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