Interested Micro & Small units applying for tender would not have to pay the tender cost and earnest money deposit in bidding for the railway tender: PIA President
In a bid to promote the Micro and Small Enterprises (MSEs) in the country, the Railway Ministry in an announcement has reserved 358 items that are to be procured exclusively from the Micro and Small Enterprises (MSEs).
Welcoming the announcement by the Railway Ministry, PIA President Sri R. Krishnamurthy said this will give a tremendous boost to small entrepreneurs in Peenya Industrial Area as many of them aspire to become Vendors to the Railways. “I would like to extend my gratitude to Hon’ble Railways Minister Sri Suresh Prabhu for this gesture which will greatly benefit our small entrepreneurs.
Because of this reservation, the interested Micro and Small units applying for tender would not have to pay the tender cost and earnest money deposit in bidding for the railway tender,” he said.
The list of items that are reserved for procurement from the Micro and small Units include handicraft, painting brushers, cleaning equipment, stationery, leather items etc.
Also, the Ministry informed that the MSEs will now be encouraged to participate in maintenance business and also in operation of rolling stock. It further said that supply of cable, linen, paints, wall panelling, drilling machines and coupler body will also be done by the sector.
These announcements come after a recent meeting between Hon’ble Railway Minister Sri Suresh Prabhu and other senior Ministers, Officials from Small Industries Development Bank of India (SIDBI) and MSE Vendors.
The Ministry also requested its research wing Research Designs and Standards Organization (RDSO) to support the Micro and Small enterprises in innovation. Also SIDBi was advised to support the MSEs financially
Rs 4.15 lac crore investment on Vendor Development Program to benefit MSMEs
The Indian Railways recently announced to implement the Vendor Development Program with an investment amounting to Rs 4.14 lakh crores, this investment is likely to help the growth of the Small and Medium Enterprises (SMEs), according to Sri Suresh Prabhu, Hon’ble Union Railway Minister.
In a press meet, the Minister said that two companies GE and Alstom will be manufacturing diesel and electric locomotives for the Indian Railways. This would result in fresh business for the Indian Small and Medium Enterprises (SMEs).
Since the procurement is to be done from local suppliers, the International companies will bring in more business for domestic SMEs that provide material to these companies. He asserted that his Ministry is committed to go beyond theoretical claims of working for the benefit of the Indian companies and actually do something substantive
He also informed that the Railway further intends to invest over Rs 40,000 crore in the short-term towards locomotive development in the country, and business for SMEs can also be expected once the investment is executed.