TIRUCHI
Heavy engineering industries in Tiruchi region have not yet lost hope on procuring orders from Integral Coach Factory (ICF), Chennai, for supply of components.
Having developed capabilities for forging and machining, the engineering units in the region are in a position to tap the business opportunities of the ICF. They now emphasise on enforcement of 'force majeure' clause (a contract provision that relieves the parties from performing their contractual obligations when certain circumstances beyond their control arise, making performance inadvisable, commercially impracticable, illegal, or impossible) in the context of the pandemic. "We have urged the Central Government to safeguard the engineering industries from the impact caused by the escalation of prices of inputs," Rajappa Rajkumar, president of BHEL Small Industries Association, said.
Since the orders from the BHEL have shrunk, the ancillary industries have been looking at ways to adapt their competencies to the requirements of large-scale industries catering to railways and defence sectors.
Responding to a representation made by BHELSIA, the Railway Ministry had, earlier this year, arranged for a vendor meet to explain the potential available with railways and also to explain the registration process. "We have been invited again for an orientation on the registration process," Mr. Rajappa Rajkumar said.
BHELSIA’s emphasis has been that the Golden Railway Workshop and the Integral Coach Factory should deviate from L1 tender system where the lowest quotation is prioritised. BHELSIA expects the railways to recognise the superiority of the eco-system for heavy machinery fabrication in Tiruchi region. According to fabrication experts, the complaints from travelling public on water seepage during rainy season in weld joints of the new Linke Hofmann Busch (LHB) coaches manufactured by ICF could be linked to the L1 tender system.
On their part, officials of ICF, Chennai, have been extending an assurance that the fabrication units in Tiruchi could derive advantage from their proximity to Chennai over the ancillary industries in places such as Kolkatta and Pune, and that the ICF, Chennai, holds the reputation for making prompt payments.
The Tiruchi District Tiny and Small Scale Industries' Association (TIDITSSIA) has been urging the Ministry of Railways to consider establishing a manufacturing unit of Integral Coach Factory in Tiruchi.
According to TIDITSSIA president R. Ilango, the excess land available on the Golden Rock Railway Workshop premises could be utilised for expansion of ICF, and thereby, the survival of the several ailing ancillaries of BHEL.
