Rourkela Steel Plant service contract orders reach Rs 500 crore annually

ROURKELA:  Service contractor orders of Rourkela Steel Plant (RSP) is likely to reach all time high of Rs 500 crore annually. A substantial portion of the orders remain within the local economy through city-based service contractors. 

On the contrary, the ancillary industries in Micro, Small & Medium Enterprise (MSME) sector in and around Rourkela are not able to get adequate supply orders largely due to their lagging behind in technological upgradaton to meet quality criteria and capability to produce prescribed items. RSP sources claimed the plant’s Contract Cell Works (CCW) department has set all time high record for placing service contract orders to the tune of Rs 454.82 crore in the first three quarters of 2022-23 till December, 2022. 

Sources said it is likely to surpass the value of orders for service contracts by end of 2022-23 and a majority of the service contract works are done by the local service contractors to strengthen the local economy. However, manufacturing ancillary industries are lagging behind in absence of adequate procurement from RSP. Industries procuring secondary steel to produce various products are also reportedly left in the lurch owing to lack of support from RSP.

However, RSP sources said a list of 264 imported parts, machines, spares were shared recently with local MSME’s/industries to explore the possibility of their replacement with locally and indigenously developed parts and machines. RSP has also identified around 4,000 items for exclusive procurement through Odisha-based MSME industries. The plant also adheres to the principle of procuring 25 per cent of other items from MSME industries. 

Rourkela Chamber of Commerce & Industries (RCCI) president Subrata Patnaik said local ancillary industries are not getting adequate procurement orders from RSP. It would be beneficial for the local economy if RSP sincerely and on priority places adequate procurement orders with local industries and the local MSME units also enhance their capabilities.   

Sources said Purvoday Scheme - “Ispati Ilakon ka Vikas - SAIL Ke Saath” launched in January 2020 by Ministry of Steel has virtually derailed at Rourkela. Former RCCI President Pravin Garg said the Purvodaya scheme provides cash discount and allows supply of steel materials to registered buyers on priority basis. But after providing steel materials to local registered buyers, RSP has stopped entertaining them.