SMEs in and around Tiruchirappalli catering to Bharat Heavy Electricals Limited (BHEL) are planning to increase their capacity in a bid to meet the power requirement by the public sector company better. To improve their facilities and enhance production, small units have also decided to invest around Rs 250 crore.
“Given the resurgence in the power market and the global scenario, we are expecting demand from BHEL to increase in the coming few days. Therefore, increasing capacity will help SMEs to meet the resurging demand and cater to the market requirements,” said A Ghosh, proprietor of Kamal Engineering Works, a small-sized engineering company in Kolkata.
According to industry sources, BHEL is likely to step-up its outsourcing orders by 150% in the near future. Keeping that in mind, some of the key suppliers of power equipment to BHEL have already asked the small-scale vendors to increase their capacity.
“Making optimum utilisation of capacity and upgrading facilities will help SMEs to increase their supplies in the market,” said a senior government official.
SME vendors that supply to BHEL have also been recommended to follow a cluster model in order to deal with the capacity issue as well as increase their capacities.
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