Lok Sabha Question No. 2786 (UNSTARRED), answered on 2021-12-15
Subject: Payment to Sellers on GeM Portal
Ministry: COMMERCE AND INDUSTRY
Asked by: Raja Amareshwara Naik, Sukanta Majumdar, Vinod Kumar Sonkar, Bhola Singh, Jayanta Kumar Roy

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2786 TO BE ANSWERED ON 15 th  DECEMBER, 2021

## PAYMENT TO SELLERS ON GeM PORTAL

2786.

SHRI RAJA AMARESHWARA NAIK:

DR. SUKANTA MAJUMDAR:

SHRI VINOD KUMAR SONKAR:

SHRI BHOLA SINGH:

DR. JAYANTA KUMAR ROY:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) whether there have been complaints regarding delayed payments against purchase of goods and materials by various Government organisations on Government eMarket (GeM)Place portal;
- (b) if so, the details thereof so far, year-wise;
- (c)   the  details  of  buyers  who  have  currently  withheld  payments  to  the  sellers, department-wise;
- (d)   whether delayed payments have been impacting flow of capitals and funds to the selling companies;
- (e) if so, whether there is need for provisions to ensure timely payment to sellers on GeM portal as per general terms and conditions; and
- (f) if so, the details thereof?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

- (a): Some complaints regarding delayed payment by buyers have been received.

(b): Year wise details of number of Incidents (Complaints) raised by various sellers for delay in payments are as under: -

| Year   | Total Number of contracts placed on GeM   | Percentage (%) of Incidents for delay in payment   |
|--------|-------------------------------------------|----------------------------------------------------|
| 2018   | 9,43,336                                  | 1.61%                                              |
| 2019   | 19,43,036                                 | 1.57%                                              |
| 2020   | 22,84,489                                 | 0.98%                                              |
| 2021*  | 18,19,708                                 | 0.60%                                              |

*data till as on 08.12.2021.

(c): The  buyers  who  have  currently  withheld  payment  to  the  sellers  include  some Ministries & Departments and other organizations of the Central Government and of the State Governments..

(d): No such information is available.

(e)  &  (f): GeM  in  consultation  with  Department  of  Expenditure  has  been  taking  proactive steps for enabling timely payments to sellers against GeM Contracts.

GeM has enabled GeM Pool Account (GPA) method of payment in which payments are automatically transferred to seller accounts if the buyer fails to make payments when it is due. Buyers are being encouraged to adopt GPA payment method progressively.

Department of Expenditure vide OM no.F.6/18/2019-PPD dated 3rd July, 2020 has also issued instructions related to prompt payment to suppliers against GeM Contracts. In order  to  bring  more  discipline  amongst  buyers for  timely  payments,  the  OM  also  has provision  of  charging  of  penal  interest  on  payments  delayed  beyond  prescribed timelines (https://assets-bg.gem.gov.in/resources/pdf/prompt-payment.pdf). The OM provides  that  the  amount  collected  in  this  regard  shall  be  deposited  in  an  account maintained by GeM.

GeM  has  also  started  provision  for  automatic  generation  of  Provisional  Receipt Certificate  (PRC)  and  Consignee's  Receipt  and  Acceptance  Certificate  (CRAC)  if buyers do not take actions on time.

All above steps are expected to bring about more discipline amongst buyers and ensure timely payment to sellers.

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