FGI lights up the path for Gujarat’s MSE units

by Adfactors PR

The Federation of Gujarat Industries

The Federation of Gujarat Industries

Financial burden of those supplying equipment to the discoms of GUVNL reduced considerably

Vadodara, Wednesday, 09 May 2012: Gujarat’s leading industries body, the Federation of Gujarat Industries (FGI), has succeeded in convincing the Gujarat government to considerably reduce the burden on the MSEs (micro & small enterprises) who supply equipment to the distribution companies (discoms) of the Gujarat Urja Vikas Nigam Ltd (GUVNL).
FGI had represented to the Gujarat government and GUVNL that the MSEs, while submitting their offers against tenders floated by the discoms of GUVNL have to bear heavy financial burden of security deposit and performance bank guarantee. FGI had submitted a proposal to reduce both the security deposit and performance bank guarantee rates imposed upon MSEs during the process of obtaining quotes for the supplies to be made to the discoms of GUVNL.
After persistent follow up from FGI, the state government has agreed to reduce both the rates for the small, cottage and tiny industries in Gujarat. The security deposit has been reduced from 10% to 6% and the performance bank guarantee rate has been brought down to 3% from 5%.
Sharing her views on this new development, President of FGI, Smt. Geeta Goradia said, “Our endeavour at FGI has always been to provide all possible assistance to the various industries in the state so as to improve their performance. We are grateful to Industries Minister, Shri Saurabhbhai Patel, the previous MD of GUVNL, Shri L. Chuaungo, and present MD of GUVNL, Shri Mukesh Puri for extending their full support in upholding the interests of the MSEs in Gujarat.”
Apart from the reductions in the two rates, FGI had also last year got another major concession from the Gujarat government. Earlier both the security deposit and the performance bank guarantee were collected simultaneously before even the commencement of supplies to GUVNL discoms. After representation from FGI, the rules were modified and as per the new norms only security deposit was to be collected before the commencement of supplies to GUVNL discoms. The performance bank guarantee had to be obtained before completion of the last stage of supply.

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