Lok Sabha Question No. 3202 (UNSTARRED), answered on 2016-12-05
Subject: Promotion of e-Commerce
Ministry: COMMERCE AND INDUSTRY
Asked by: PREM SINGH CHANDUMAJRA, E. T. MOHAMMED BASHEER

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 3202.

TO BE ANSWERED ON MONDAY, THE 5 TH  DECEMBER, 2016.

## PROMOTION OF E-COMMERCE

## 3202.  PROF. PREM SINGH CHANDUMAJRA: SHRI E. T. MOHAMMED BASHEER:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्यग ं ्री

- (a) whether  the  Government  has  set  up  a  committee  to  suggest  measures  to  promote e-commerce in the country;
- (b) if so, the details along with the present status thereof;
- (c) whether the Government has received suggestion to route its purchase through e-commerce;
- (d) if so, the details thereof and the response of the Government thereto; and
- (e) whether the Government has taken steps to regulate and licence e-commerce in various products including food and food products in the country, if so, the details thereof?

## ANSWER

## वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a) & (b): A  Committee has been constituted to examine various issues relating to e-commerce under  the  Chairmanship  of  CEO,  NITI  Aayog.  The  Committee  inter-alia  comprises representatives  from  Department  of  Industrial  Policy  &  Promotion,  Department  of Economic Affairs, Department of Electronics & Information Technology, Department of Consumer Affairs and certain State Governments namely Assam, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Punjab.
- (c)  & (d): Different  Ministries/  Departments  receive  suggestions  on  various  issues,  which  are considered by the Government and necessary amendments, if required, are made in the  policy  from  time  to  time.  Further,  Government  has  inserted  Rule  141  in  General Financial  Rules  (GFR),  2005,  which  provides  that  Directorate  General  of  Supplies  & Disposal will host an online e-Marketplace for common use goods and services. Details
- thereof are at Annexure.
- (e): The  e-Commerce  companies  have  to  comply  with  the  Companies  Act  and  other applicable laws of the country. Such companies with FDI can operate only in activities which are specifically permitted as per the 'Consolidated FDI Policy Circular of 2016'. Further, activities of e-Commerce companies inter alia involve compliance of Shops and
- Establishment Act of the State concerned.

*****

## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO  PARTS (c)  &  (d)  OF  LOK  SABHA UNSTARRED QUESTION NO. 3202 FOR ANSWER ON 05 TH  DECEMBER, 2016.

Government e-Market place (GeM): DGS&D will host an online Government e-Marketplace  (GeM)  for  common  use  Goods  and  Services.    The  GeM  would  be dynamic,  self  sustaining  and  user  friendly  DGS&D  will  ensure  adequate  publicity including  periodic advertisements in newspapers of the GeM and the items to  be procured through GeM for the prospective suppliers. The procuring authorities will satisfy  themselves that  the  price  of  the  selected offer  is  reasonable.  GeM may  be utilized by Government buyers (at their option) for direct on-line purchases as under:

- (a)    Upto  Rs.50,000/-  through  any  of  the  available  suppliers  on  the  GeM, meeting the requisite quality, specification and delivery period;
- (b)    Above  Rs.50,000/-  through  the  supplier  having  lowest  price  amongst  the available suppliers on the GeM,  meeting the requisite quality, specification and  delivery  period.  GeM  will  also  provide  tools  for  online  bidding  and online reverse auction which can be used by the Purchaser.

The above monetary ceiling is applicable only for purchases made through GeM. For all other purchases, GFR Rule 145,146, 150 and 151 will apply.

*******