MSMEs send SOS to Odisha government over Tata Power procurement

BHUBANESWAR: Small and medium enterprises manufacturing transformers in the State have accused Tata Power of pushing the domestic enterprises to death by "deliberately excluding them from its procurement policy".

The existence of more than 60 transformer manufacturing units is under severe danger and livelihood of more than thousands of workers is at stake unless the State government intervenes urgently in the issue.

The manufacturers alleged that the units set up to cater to the needs of electricity distribution companies as per the MSME and Industry policies of the State government are likely to shut down due to the monopoly and unilateral policy.

After takeover of discoms by Tata Power, the manufacturers and other services units are not getting orders as the State units are not recognised as their vendors.

Secretary of Odisha Assembly of Small and Medium Enterprises (OASME) Satwik Swain said Tata Power has deliberately introduced certain rules not to recognise the State manufacturers. Despite having all certification from BIS, BEE and ISO, the power utility is intentionally not considering them as their vendors, he said.

The association has urged the State government to give instructions to Tata Power to follow the procurement policy of the State and enlist all such manufacturing units as its vendors.

"Tata Power must relax its eligibility criteria immediately to enlist local vendors and procure all material from the State only. When quality products are being manufactured in the State, why would it procure from outside," Swain asked.

Manufacturers pointed out that the State policies are not followed by the company even if the government has a stake in the discoms.

President of Odisha Transformer Manufacturers Association Sarada Prasana Das said the State government has its own procurement policy  which was previously followed by OPTCL. "The intention of Tata Power to purchase transformers from outside the State will result in loss of revenue to the exchequer and leave the industries sick," he observed.