According to industry sources, as many as 300 manufacturing units in Coimbatore have been severely affected due to a new change in the tender process and system for the supply of various products, including signals equipments to Southern Railways.
Coimbatore: In the industrial town of Coimbatore manufacturing sector is a vibrant one. A variety of products including pumpsets and grinders. are manufactured and supplied extensively.. The small Industries also play a part in supplying technical equipment to Southern Railways.
There are more than 300 industrial units functioning in Coimbatore district that supply technical goods to Railways. These companies have undertaken the work of producing technical equipment including signal equipements to supply to the Southern Railways.
About 50,000 workers get their employment opportunities through these manufacturing companies regulary.
According to industry experts, some basic changes have been implemented in the regular tendering process in the Railways, due to which the companies have been severely affected and they stare at an uncertain future.
Surulivel, President of the Coimbatore-headquartered Railway Suppliers' Association (RASA), said: "In Coimbatore district, more than 300 small industries are producing goods for the railways.including the point machine used for the signals, the relay, the boom used for the automatic gates, which were manufactured and supplied to Railways".
"We also supply open line products, compressors which are. required for railway tracks. Apart from this, various products are also manufactured.and supplied"
Usually the tender for the forthcoming year is floated in November and December. While the supply of goods to the railways will commence in March and April. the new system has been implemented by the Railway administration from this year, which has disturbed the process.
"The industrial sector is put in an unenviable situation as the manufactures who get their work orders have been advised to distribute it not only for the next one year, but also till 2024. Entrepreneurs will have to face many problems due to such a move like how to deliver the goods for prices of goods till 2024, especially with the market price fluctuations of raw materials " said Surulivel.
"Besides, at present, Defence Investment funds charge 5 to 10 per cent of the total work order value. The financial burden will also increase with the new practice" he said
"Since these issues have affected the production of industrial establishments in Coimbatore, various steps will be taken, including meeting the Railway Minister and officials in person at the earliest and submitting a memorandum." Surulivel noted.
There are more than 300 industrial units functioning in Coimbatore district that supply technical goods to Railways. These companies have undertaken the work of producing technical equipment including signal equipements to supply to the Southern Railways.
About 50,000 workers get their employment opportunities through these manufacturing companies regulary.
According to industry experts, some basic changes have been implemented in the regular tendering process in the Railways, due to which the companies have been severely affected and they stare at an uncertain future.
Surulivel, President of the Coimbatore-headquartered Railway Suppliers' Association (RASA), said: "In Coimbatore district, more than 300 small industries are producing goods for the railways.including the point machine used for the signals, the relay, the boom used for the automatic gates, which were manufactured and supplied to Railways".
"We also supply open line products, compressors which are. required for railway tracks. Apart from this, various products are also manufactured.and supplied"
Usually the tender for the forthcoming year is floated in November and December. While the supply of goods to the railways will commence in March and April. the new system has been implemented by the Railway administration from this year, which has disturbed the process.
"The industrial sector is put in an unenviable situation as the manufactures who get their work orders have been advised to distribute it not only for the next one year, but also till 2024. Entrepreneurs will have to face many problems due to such a move like how to deliver the goods for prices of goods till 2024, especially with the market price fluctuations of raw materials " said Surulivel.
"Besides, at present, Defence Investment funds charge 5 to 10 per cent of the total work order value. The financial burden will also increase with the new practice" he said
"Since these issues have affected the production of industrial establishments in Coimbatore, various steps will be taken, including meeting the Railway Minister and officials in person at the earliest and submitting a memorandum." Surulivel noted.