PSUs step up local procurement to boost ancillaries

Four major PSUs operating in the state- National Aluminium Company Ltd (Nalco), Neelachal Ispat Nigam Ltd (NINL), Hindustan Aeronautics Ltd (HAL) and Rourkela Steel Plant (RSP), a unit of Steel Authority of India Ltd (SAIL), have stepped up procurement of various items of necessity from the local ancillary units.

Topping the list of these PSUs is RSP which procured equipment worth Rs 81.7 crore from the ancillary units in 2009-10 and has already procured equipment worth Rs 45.76 crore in the April-June quarter of this fiscal. The steel plant has received these items from as many as 198 vendors.

"We have conducted four Plant Level Advisory Committee (PLAC) meetings in the past one and a half month with Nalco, RSP, NINL and HAL. From our review, we have come to know that these PSU are making genuine efforts to step up procurement from the local vendors, thereby promoting development of ancillary units”, said state industries secretary, Saurabh Garg.

Nalco's procurement stood at Rs 57.06 crore in 2009-10 and the aluminium major has set a procurement target of Rs 70 crore in the current financial year.

The company has received various items of necessity from 49 vendors and nine per cent of its overall procurement is from the local vendors.

NINL's procurement from the local vendors stood at Rs 4.19 crore in 2009-10.

The steel PSU procures from 35 vendors.

Similarly, HAL which has a unit at Sunabeda in Koraput district, procured equipment worth Rs 1.09 crore in 2008-09 and Rs 1.52 crore in 2009-10.

“It is mandatory to have PLAC meets with the PSUs and PLCC meets with the private sector players at least once in a year to review the steps taken by them to promote the ancillary units. As per the guidelines of the Union MSME ministry, the mother industries are required to go for local procurement to the extent of 20 per cent but this guideline has not been made mandatory”, he added.