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Govt’s e-commerce system ready for next stage
December 28, 2021
The government’s ambitious open network for digital commerce protocol, touted as the equivalent of UPI, is set to move to the next stage.
The department of promotion of Industry and Internal Trade (DPIIT), which is piloting the initiative, has roped in dozen shareholders for a section 8, or a not-for-profit company, under the companies Act. These players have together committed an initial equity of ₹185cr, with two three more shareholders to join before the company is registered.
Separately, the technology team has simulated a transaction for the ONDC protocol, which will be positioned as a tool where e-commerce players, kirana and other offline retailers and logistics players come and sell their products.
Government sources told TOI, “We can go live in next few months. We have already done a hackathon, and more are planned next month to help us develop and improve it.
Through organizations such as CAIT, the government is hoping to rope in sellers on ONDC, which is seen as a first of its kind plan to take on the likes of Amazon and Flipkart that have slowly become entrenched in the market, which offline stores complaining of losing out, partly due to what they allege are deep discounts. Commerce and Industry minister Piyush Goyal had said that ONDC will create new opportunities and remove monopolistic ecosystem.
While some of the traders had sought to counter it through an alternate platform, the initiative has not taken off.
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