Railway suppliers demand release of funds

The Railway Suppliers Association has appealed to the Central government to immediately release funds and clear the arrears for Micro, Small and Medium-scale Enterprises (MSMEs) for the spares and components supplied.

In a memorandum to the Minister for Railways, the Association said the Railway Board had issued two circulars directing officials to clear the bill payments for MSMEs. Yet, there were huge arrears to be cleared. The officials reportedly told the suppliers in many places that they were not having adequate funds.

At the New Bongaigaon Carriage Workshop, the officials said that funds were not available for six months. But bills submitted about a year ago were also pending. Though there was a delay in the MSMEs getting the payments, they were levied penalties for not supplying the parts on time. The MSMEs did not have funds to continue production. Hence, funds should be released for the MSMEs supplying to the Railways and the units should be exempted from all penalties liquidated damages on delayed supply till June this year, the Association said.