In line with this government agenda, Industrial Products Finder (IPF) hosted its 2nd Buyer-Seller Summit on October 21 that discussed various MSME supply avenues and opportunities for indigenisation. The speakers from the large government organisations also educated MSMEs on developing their approach as a supplier exploring domains where the company is interested to indigenise.
The webinar - moderated by Rakesh Rao, Executive Editor, Industrial Products Finder (IPF) - included panelists such as Shoba Pattabhiraman, GM- Corporate Materials, NTPC LTD; Srinivas Sirupa, Head-SCM, L&T Power; V Kishore, Dy GM, Rashtriya Ispat Nigam Ltd (Vizag Steel) and Neelam Pathak, Director - Sourcing & Analytics, AGSO, Nordex.
Sanjeev Chawla, Director, Office of Development Committee (DC) MSME, Ministry of MSME was the Guest Speaker of the webinar. Chawla highlighted what do MSMEs want? What pressing issues are keeping them behind. Chawla pointed out, “Government PSUs have started procuring from MSME or MSEs. MSEs have become regular suppliers the larger organisations. What remains missing is the connecting link between these government organisations and MSMEs.”
“The procuring government departments should make a provision of a Nodal Officer who can understand the issues and guide the MSMEs to obtain clearances and also make them understand the regulations. The Ministry of MSME has offices for facilitation of the MSMEs across all states,” informs Chawla.
MSMEs are serious when it comes to work but are in need of reliable and trustworthy guidance, believes Chawla.
NTPC’s Phased Manufacturing Program (PMP) was introduced during bulk tendering of 660MW / 800MW units. Many manufacturing facilities of high value items like turbine, generators, boiler components were developed in India.
Apart from turbine, generator and boiler components, manufacturing facilities for some other components like BFP, CEP, heaters, deaerators, fans etc. were also developed looking at future demand. Same concept shall be continued by NTPC and effort shall be made to include more equipment into the ambit of PMP.
To promote MSME vendors, MSEs are given various benefits in procurement of Goods and services in line with PPP, 2012 and to improve their competitiveness vis-à-vis other bidders. Vendor development programs/special VDPs are being organised across the NTPC.
NTPC also has significant provisions for SC/ST and women entrepreneurs.
In the current financial year till Aug’20, NTPC’s MSE procurements accounts to 49.44 per cent, which is highest so far. Shoba Pattabhiraman from NTPC concluded her presentation explaining vendor registeration process, seeking help and which areas is NTPC looking at to source vendors – Spares supply, indigenous development etc.
The recent changes in the MSMED Act in July 2020 will benefit Indian MSMEs as more vendors will fall in the MSMED category due to these changes, benefitting larger business base, Sirupa noted.
Enlisting challenges faced by L&T Power in India for sourcing, he states that these products struggle to meet delivery and capacity. These products are such as drive turbine for boiler feed pumps, liquid ring vacuum pumps, agitators, gas cooling pump, gypsum dewatering system, insulators for ESP and smart actuator. Besides, some products that are not manufactured in India are such as C-276 coils, plates & pipes; explosion bonding of C-276 services; titanium (Gr-2) coils, plates & clad plates, rapper coils, borosilicate blocks and Power Cycle Pipe. He informs that L&T Power also has plans to manufacture some products in India to indigenise them ensuring regular supply in future.
Speaking about the Nordex plans in India, Neelam Pathak of Nordex explains, “Nordex is looking ahead for suppliers from India for global installations and these services run for contracts of upto 20 -30 years. Thus, the scope for the suppliers is huge and it will help you to be a renowned global supplier which will help suppliers from India earn goodwill for their domestic products.”
India too has ambitious plan when it to Solar energy but the realm of renewable energy also requires other sources too. Looking at the wind energy, last years there has been boom in adoption of the same. “In India, Castings and Towers is the segment where Nordex will be interested. Manufacturing companies can have access to global technology backed long term associations for supply and maintenance. China has developed its ecosystem and current conditions enable India to develop their own,” adds Pathak.
Sharing a significant insight, Pathak states, “The whole Wind Turbine component chain is highly concentrated among companies themselves. Thus, there is a big room for services and maintenance in the domain.”
“A separate structure of Vendor development Cell exists at the company which reviews various tenders and also the performance of he vendors. Based on the successful performance, un-enlisted vendors will also be awarded supplies,” says V Kishore. Some key material segments where the company is currently looking for vendors are such as automobiles tyres and spares, bearings, chemicals (purifying mass compound, soda lime), conveyor belts(conveyor belt repair material, COB-SC <= 2MW GRHR), electrical equipment (HV insulating mats), lamps & light fittings, photo voltaic modules, crimping tools, temperature and sample probe-HM, semiconductor fuses etc, ceramic coated lance and others.
Alike NTPC, RNIL also helps local vendors with concession inn turnover while also help startups to be part of vendors. While the company is looking out for SC/ST and women vendors to meet prescribed government requirements. This is an area which is not utilised well by the concerned MSMEs.
The information-loaded webinar observed that the large organisations shall have a ‘connect-to’ point or Nodal Officer for supplier facilitation to help MSMEs understand the process. Further, the large companies have opened up avenues for indigenisation, which MSMEs should take a note of and leverage the opportunity. This will help build global-level products in India.
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