Tiruchirapalli

BHELSIA to insist on price variation clause to undertake works for railways

BHEL Small Industries Association (BHELSIA), which is exploring scope for fabricating components for products manufactured by the railways, will emphasise on a long-term price variation clause as a pre-requisite to building a sustained partnership with the coubtry’s largest public sector undertaking.

Due to BHEL’s policy to do away with the clause, ancillary units face a huge setback after the cost of steel increased by nearly 40%.

BHELSIA’s position is that the Golden Railway Workshop and the Integral Coach Factory should deviate from L1 tender system where the lowest quotation is prioritised.

A threshold must be fixed for ensuring better quality, BHELSIA president Rajappa Rajkumar said.

The association has been invited for a vendor meet of Golden Railways Workshop later this month and, subsequently, with Integral Coach Factory.

BHELSIA is confident that the railways will recognise the superiority of the eco-system for heavy machinery fabrication in Tiruchi region. Under the L1 system, welding deficiencies in railway coaches are quite visible, Mr. Rajappa Rajkumar said in the wake of media reports published earlier this month that the new Linke Hofmann Busch (LHB) coaches manufactured by ICF has developed leaks.

Water seepage through weld joints was noticeable during the rains.

BHELSIA has for long been urging the Central government for creation of a situation conducive for fabrication industries to manufacture components for the railways and the defence sector after the order position of BHEL started dwindling.

According to industrialists, the scope for expansion of thermal power generation appears bleak in view of the country’s shift towards renewable energy. In 2019, the Centre announced that as part of Nationally Determined Contributions under the Paris Accord on Climate Change, India has made a pledge that by 2030, 40% of the installed power generation capacity shall be from non-fossil fuel sources.

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Printable version | Mar 5, 2021 7:34:55 PM | https://www.thehindu.com/news/cities/Tiruchirapalli/bhelsia-to-insist-on-price-variation-clause-to-undertake-works-for-railways/article33588189.ece

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