Technology for MSMEs: Nearly a year just after the Commerce Ministry stated it enabled a provision for sellers on Government eMarketplace (GeM) to indicate the percentage of nearby content in solutions, the government has now warned of enterprise losses for these who do not declare the similar even though uploading their item and developing catalogue on GeM. “Sellers who do not declare local content percentage while uploading product and creating catalogue on GeM will lose out on business and will not be able to participate in bids in which buyer has chosen to procure only MII compliant products,” the ministry stated.
Even for made-in-India solutions, the government stated purchasers can determine solutions with greater nearby content to make obtaining choice accordingly. Also, purchasers have been supplied with a filter in the marketplace to determine and pick solutions from amongst Make in India (MII) complaint sellers and solutions only.
“It is a gimmick as some companies are taking advantage by showing Make in India certificate in comparison to those enterprises which have MSME certificate and hence are original manufacturers. Through MII compliance, other enterprises are being benefitted. Nobody checks how much local content they have in their products if they have MII certificate. They are given a 25 per cent price preference while MSMEs are offered only 20 per cent. If you are an MSME, you cannot have an MII certificate,” Janak Bhatia, Managing Director, Janak Positioning & Surveying Systems – manufacturer and distributor of survey instruments told TheSpuzz Online. Bhatia is also the Uttar Pradesh state President for Laghu Udyog Bharati.
Want to know about simple access to capital for your enterprise? Register for our webinar on generating capital accessible for SMEs
The government also announced that a loan app named GeM SAHAY is getting rolled out for GeM sellers. The sellers would be in a position to apply for a loan at the point of acceptance of an order after the app is launched and would assistance in catering to the working capital requirements of sellers. “GeM is collaborating with the Indian Software Product Industry Round Table (iSPIRT) for the implementation of the GeM- SAHAY project, which has been tailored to meet the specific needs of MSMEs on the GeM platform,” the ministry added. It stated that loan disbursement will be instantaneous by way of the app rather of the traditional in-principle approval of a loan that may possibly incredibly generally not culminate in an actual disbursal. The loans would be facilitated by way of public sector banks, private banks, and NBFCs.
GeM has more than 6,90,000 MSE sellers contributing more than 56 per cent of the total order worth on GeM, Commerce Secretary Anup Wadhawan told reporters on Wednesday. The quantity of MSEs registered on the GeM platform had jumped more than 62 per cent because FY20. Since its inception in August 2017, GeM has facilitated 67.27 lakh orders worth 111,113 crores from 18.85 lakh sellers for 52,275 government purchasers. Moreover, 6,95,432 MSEs have fulfilled 56.13 % of the total order worth on GeM.