"Railways and defense are two organizations that are unaffected by the current economic recession. They have the potential to lift the Adityapur MSMEs from the financial crisis," said A K Srivastava, chairman, Seraikela-Kharswan Chamber of Commerce and Industry (SKCCI).
In an letter to state industry secretary A P Singh, the SK functionary sought high-level discussion with the top brass of railways and defense for a business breakthrough. "The state government should arrange for a visit of the high-powered committee from research designs and standards organization (railways) and the director general of ordnance factories (Kolkata)," said Srivastava in the letter to the industry department.
According to industry insiders, the coach and wagon manufacturing companies of the railway and defense machinery equipment manufacturing companies, could play a crucial role in reigniting the business cycle of the Adityapur industrial area, lying idle for the last few quarters now.
"Majority of the MSMEs here are technically competent to qualify for railway and defense vendors job," said industrialist and Adityapur Small Industries Association (ASIA) functionary, Santosh Khetan.
The desperation for procuring business from the two government organizations stems from the deep potential financial crisis staring at the MSMEs in the Seraikela-Kharswan district owing to a steady decline in orders from global auto major Tata Motors Jamshedpur plant.
"Many of the Tata Motors ancillaries have been declared as non performing assets (NPA) by the banks which financed these units. The procedure of recovery through debt recovery tribunal is so stringent that hardly does any of the NPA get relief or relaxation," said a functionary of the Laghu Udyog Bharati, adding that some ancillary units have been auctioned already.