Seeking Government intervention in light of steep hike in Steel and Copper prices
In the past 10 months, steel and copper price has increased by 74% and 45 % respectively. Hundreds of thousands of MSMEs work on government and PS U contracts. Most of them are unable to service these contracts because of the steep steel/copper price increase.
It is therefore critical that for all government and PSU (BPCL, IOCL, HPCL, BHEL, PDIL & ONGC ) contracts with MSMEs, a price escalation for steel and copper is granted immediately for the portion of pending contracts as well the contracts executed during the fiscal year 2020-21. If this is not done, many of these MSMEs, who are already struggling with the impact of COVID, will be forced to default on contracts and in many cases face shutdown and this can lead to negative impact to Indian Economy as well.
We request the community here and LocalCircles to kindly escalate this concern of ours to the requisite Government of India departments for swift and timely action and save many of the MSMEs from going under. more
My father and others in his association have highlighted the unabashed profiteering to Central Hovt indulged in by major raw material producers such as of iron and steel, copper, aluminium & polymers during pandemic who have increased prices on a weekly basis during the last six months. more
Hope the government can help. Just wondering - such price escalations should have been covered in the contracts? more
The price increase is not limited to Price of Metals. Certain HI TEC equipment such as satellite communication, Non Directional Beacon (NDB) sets are not made in India, & hence required to be imparted. MSME who had receive orders for such sets are facing increase in Foreign Exchange price (in US $, EURO € & Pound Sterling.£). The Government is requested to send circular order to Various Public sector companies such as ONGC, SCI, BPL etc. & also to Indian Defence (such as Navy, Coast Guard, Airforce & Army) to compensate for the upwards increase of Foreign exchange price. I had read such compensation order, in one of the government order. but could not find today Best Regards more