ROURKELA: Even as Rourkela Steel Plant (RSP) has been significantly contributing to the national economy and is set for another expansion for Rs 30,000 crore, the region has failed to witness commensurate growth of ancillary and downstream industries.
The slow growth of smaller industries dependent on RSP has been attributed to lack of an integrated support mechanism. Rourkela-based entrepreneurs feel Steel Authority of India Limited (SAIL) through its vast pool of knowledge, technical capabilities and commercial resources, has helped several MSME industries to grow into bigger and recognisable industries.
There are plenty of examples of large industry induced growth at Bhilai where due to hand holding support of Bhilai Steel Ltd the area has seen widespread presence of ancillary and downstream industries in both large and MSME categories. Rourkela seems lagging far behind as the number of MSME industries dependent on RSP is limited. The entrepreneurs said there is vast potential for setting up of a successful and strong MSME ecosystem with the support of RSP.
Rourkela Chamber of Commerce and Industry (RCCI) president Subrata Patnaik lamented lack of support from the RSP and an integrated mechanism to ensure growth of RSP-dependent ancillary or downstream units in the region.
Patnaik claimed, at present, only 60-70 active ancillary industries are linked to RSP while the number of downstream industries is far less. RCCI has been frequently raising the issue with the RSP management and suggesting ways to improve the numbers but in vain.
Numerous local entrepreneurs having technical capabilities both in manufacturing and job works, are not getting proper hand holding support or guidance. If RSP changes its policy, the region would witness remarkable arrival of new ancillary industries in manufacturing to meet its need for spares, consumables and other smaller items, Patnaik exhorted. This apart, new downstream units would also come up to manufacture products using RSP’s by-products.
Patnaik said a promising fabrication industry Shakti Rail Infra is struggling for survival after failing to get adequate orders from RSP. The East India Company engaged in engineering activities closed its operations for the same reason.
Local industrialist GS Agarwal said in the present circumstances a strong interface mechanism is required among local entrepreneurs and RSP’s departments concerned. “At the same time, local entrepreneurs should prepare themselves to face challenges of the new business environment,” he said.