BHEL's ancillary units face closureAncillary units under the treat of closing down

Most of the 500-odd factories that have been supplying materials to Bharat Heavy Electricals Limited (BHEL) under earlier outsourcing system (OS) for almost three decades have demanded to revive the old system and scrap the new away centre fabrication (ACF) that was introduced more than a year ago. Under OS, raw materials used to be supplied by the parent BHEL and the work was in continuous flow. After the ACF was introduced, more than 80% of these ancillary product manufacturers closed shop in phases, because they could not get the raw materials, which were now their responsibility. "It is very difficult to procure steel and other items from northern India and we are not able to invest money in the first place," stated an Indian Legal Rights Protection Helpline letter that was addressed to the district collector Jayashree Muralidharan, on Monday. more at: http://timesofindia.indiatimes.com/city/madurai/BHELs-ancillary-units-face-closureAncillary-units-under-the-treat-of-closing-down/articleshow/21791726.cms