Hi Akshay,

Thanks for your brief explanation on contact -stablization damping, both the recommended values (0.05 & 0.1) did work well forr me in this case. But I do think still some input seetings for contact has issues. I checked the deformation in true scale and also plotted the number of contacting points.

There is no contact between the components in true scale aslo (outer ring and wire). This can be also seen in number of contact points as just 2 locations (pics attached). In this scenario, what are improvements could be further done to improve the results (like contact force and deformation). 

Thanks for your time.