Lok Sabha Question No. 1178 (UNSTARRED), answered on 2022-02-09
Subject: Discount on Automotives and Tractors on GeM Portal
Ministry: COMMERCE AND INDUSTRY
Asked by: Jayanta Kumar Roy, Raja Amareshwara Naik, Rajveer (Raju Bhaiya) Singh, Vinod Kumar Sonkar, Bhola Singh

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

## LOK SABHA UNSTARRED QUESTION NO. 1178 TO BE ANSWERED ON 09 th  FEBRUARY, 2022

## DISCOUNT ON AUTOMOTIVES AND TRACTORS ON GeM PORTAL

## 1178.  DR. JAYANTA KUMAR ROY:

SHRI RAJA AMARESHWARA NAIK:

SHRI RAJVEER SINGH (RAJU BHAIYA):

SHRI VINOD KUMAR SONKAR:

SHRI BHOLA SINGH:

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

- (a) whether  the  Government  has  imposed  mandatory  discount  clause  for  manufacturers  of automotives and tractors on GeM portal;
- (b) if so, whether these discounts are to the extent of 20% on tractors, 12% on utility vehicles and 15% on commercial vehicles whereas in DGS&D regime, mandatory discount was only 5 per cent;
- (c) if so, the grounds (study conducted, recommendations of committee, etc) on which such a huge discount are determined;
- (d) whether many latest models are not available on GeM portal on account of high discounts, which are preventing various Ministries/Departments from acquiring latest vehicles;
- (e) if so, whether huge discounts on these products are affecting the competitiveness of Indian companies to offer their modern/upgraded products on the GeM portal; and
- (f) if so, other steps being taken by the Government to rationalise mandatory discount regime on automobiles on GeM Portal to make it more competitive for domestic manufacturers?

## ANSWER

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

(a), (b) & (c): No,  Sir. Government  has  not  fixed  any  minimum  discount  for  manufacturers  of automotives  and  tractors  on  GeM  portal.  GeM  takes  decision  regarding  discounts  based  on consultation/interactions with various stakeholders including automobile manufacturers (OEM). Minimum discount for tractors and selective categories of automotive in GeM portal is as per table below:

|   Sl. No. | Vehicle category                                  | Minimum Discount (Percentage)   |
|-----------|---------------------------------------------------|---------------------------------|
|         1 | Tractors                                          | 20%                             |
|         2 | Ambulances                                        | 12%                             |
|         3 | Buses                                             | 20%                             |
|         4 | Automotive Chassis Fitted With Engine             | 15%                             |
|         5 | Built Up Trucks                                   | 15%                             |
|         6 | Troop Carrier Police Vehicles                     | 15%                             |
|         7 | Water Truck Cabin Truck With Water Tank           | 15%                             |
|         8 | Cars                                              | 12%                             |
|         9 | Utility Vehicles                                  | 12%                             |
|        10 | Two Wheeler- Motor Cycles and Scooters and Mopeds | 12%                             |

There was no mandatory discount clause for manufacturers of Automotives and Tractors in DGS&D.

- (d): At present, large numbers of vehicle models including latest models are available on GeM as may be seen from the table below:

| Sub Category                                     |   Make |   Model |
|--------------------------------------------------|--------|---------|
| Tractors                                         |     15 |     267 |
| Utility Vehicles                                 |     10 |      99 |
| Ambulances                                       |     14 |      80 |
| Cars                                             |      3 |      36 |
| Buses                                            |      6 |     120 |
| Automotive Chassis Fitted With Engine            |      6 |     115 |
| Built Up Trucks                                  |     11 |     111 |
| Two Wheeler-Motor Cycles And Scooters And Mopeds |      6 |      95 |
| Water Truck Cabin Truck With Water Tank          |      8 |      22 |
| Troop Carrier Police Vehicles                    |      4 |       6 |

Further, the above mentioned vehicle categories are the most popular and high gross merchandise value categories as may be seen from the transaction value as given in table below

| Sub Category                                     |   Transaction Value (in Cr.) |
|--------------------------------------------------|------------------------------|
| Utility Vehicles                                 |                      4916.6  |
| Ambulances - R                                   |                      1482.21 |
| Buses                                            |                      1129.57 |
| Cars                                             |                       920.66 |
| Troop Carrier Police Vehicles                    |                       655.8  |
| Two Wheeler-Motor Cycles And Scooters And Mopeds |                       624.73 |
| Built Up Trucks                                  |                       614.22 |
| Automotive Chassis Fitted With Engine            |                       500.37 |
| Tractors                                         |                       306.56 |
| Water Truck Cabin Truck With Water Tank          |                       199.8  |

- (e): Not such incident reported yet.
- (f): GeM is doing regular consultations with various stakeholders including buyers, manufactures of automobiles and any issues raised during the consultations is examined and resolved by GeM.