Large industries suffer due to crisis in ancillary units

Small and medium industrial units in Gokulshirgaon industrial estate near Kolhapur are supplying spare parts and various components to big units like Tatas, Larsen and Toubro, Mahindra, Cromton Greaves, Kirloskars etc.

But as these units are facing crisis, the big ones are almost compelled to modify their production schedule as also rate structure which is fixed in earlier period.

Those who will not revise their rates for spare parts and components may lose the required supply which is now restricted due to the crisis.

While the globalisation has increased scope for national and global markets for quality casting the scarcity of raw material in affordable rates and adequate power supply with concessionary charges have been some of the main hurdles.

B.S.Parvate-Patil, president of the Gokulshiragaon Manufacturers Association (GMA) has pointed out that if small and medium industrial units in and around Kolhapur are to be encouraged in view of national and global market requirements, special provisions have to be made to provide raw material in reasonable rates and hike in power tariff should be duly checked.

"Coal from China for instance is available with its better quality and cheaper rates, but the state-controlled coal is not affordable because of its rates and quality. This situation has to be changed," said Patil.

During his recent tour of foreign countries Patil has assessed the demand for spare parts and quality castings in global market mostly because developed countries are now more concentrating on checking pollution and hence are reluctant to encourage ancillaries in their own countries.

While developing countries should take advantage of this situation, both the government and the concerned organisations should come forward to sort out the crisis being faced by ancillaries in the small and medium sector, said Patil.