Govt to pay interest on late payment to MSMEs for GeM purchase
Government departments and agencies will have to pay interest on late payment to vendors, largely MSMEs, for products procured through the Government e-Martketplace (GeM), starting October 1.
 
Through an office memorandum, the Department of Expenditure of the Ministry of Finance on Friday said that if the payment is not made within 10 days of the Consignee Receipt and Acceptance Certificate (CRAC) being auto generated or issued by the buyer, the concerned department will have to pay interest at the rate of one per cent per month for the delayed payment.
 
However, this very interest will not go to the MSMEs concerned and instead, will deposited in an account maintained by the GeM, which will be used only for the education of buyers and sellers or public procurement with the prior approval of the Department of Expenditure, said the office memorandum.
 
"ln order to promote greater discipline and timeliness in payment to vendors, especially #MSMEs, the government has issued an order to levy interest on late payment to vendors on the government e-marketplace. #AatmaNirbharBharat," said a tweet by Finance Minister Nirmala Sitharaman's office.
 
The order will be effective on orders made from October 1, 2020.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    cvramaraju

    4 weeks ago

    Great decision madam, same to be extended in all Govt contracts to reduce harassment of suppliers by Govt officials and reduce corruption and also same to applied if suppliers do fraud with govt and no legal enforcement to halt process and decision of legal adjure within frame may be maximum one year. SoPs are required to correct the system and possible to remove govt restrictions so that economy growth automatically take care. Interface with public to be automated and transparency and seeking information under not RTI doesn't required. We are ruling ourself within constitution and no use of British laws, so we need many modifications required hoping take care from Govt.

    Varun123

    1 month ago

    Why such kolavari FM? How will it benefit vendor? If you need, allocate budget for education of vendors and concerned government officials, but pay the interest to vendor. Recover such dues from responsible officer. Then only government department will pay dues on time.

    REPLY

    cvramaraju

    In Reply to Varun123 4 weeks ago

    Varun ji said correctly dues to be collected from responsible officer before that time lines to be defined within the office and description powers to be removed and arrogance service may not inclined but govt is strong in this to improve the ease of doing of business same to be applied in all govt transactions with public and govt/PSU to govt/PSU also.

    Intel to invest Rs 1,894 crore in Jio Platforms
    Reliance Industries Limited (RIL) and Jio Platforms Limited on Friday announced that Intel Capital will invest Rs 1,894.50 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.
     
    Intel Capital's investment will translate into a 0.39 per cent equity stake in Jio Platforms on a fully diluted basis.
     
    Intel Capital joins the list of marquee firms who have recently invested in Jio Platforms, taking the total investment amount to Rs 1.17 lakh crore.
     
    Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a next-generation technology platform focused on providing high-quality and affordable digital services across India, with more than 388 million subscribers.
     
    Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, "We are extremely delighted to deepen our ties with technology leaders that embody our vision of transforming India into a leading Digital Society in the world. Intel is a true industry leader, working towards creating world-changing technology and innovations".
     
    "Intel Capital has an outstanding record of being a valuable partner for leading technology companies globally. We are therefore excited to work together with Intel to advance India's capabilities in cutting-edge technologies that will empower all sectors of our economy and improve the quality of life of 1.3 billion Indians", Ambani added.
     
    Wendell Brooks, Intel Capital President, said, "Jio Platforms' focus on applying its impressive engineering capabilities to bring the power of low-cost digital services to India aligns with Intel's purpose of delivering breakthrough technology that enriches lives. We believe digital access and data can transform business and society for the better. Through this investment, we are excited to help fuel digital transformation in India, where Intel maintains an important presence."
     
    Jio Platforms has made significant investments across its digital ecosystem, powered by leading technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain.
     
    Jio's vision is to enable a Digital India for 1.3 billion people and businesses across the country, including small merchants, micro-businesses and farmers so that all of them can enjoy the fruits of inclusive growth.
     
    Intel Capital invests globally in innovative companies with a focus on disruptive technology areas like cloud computing, artificial intelligence and 5G –- opportunities where Jio is also innovating and investing for growth.
     
    Intel Capital is the investment arm of Intel Corporation, a leader in the semiconductor industry, shaping the data-centric future with computing and communications technology that is the foundation of global innovations. Intel has operated in India for more than two decades and today employs thousands of employees there with state-of-the-art design facilities in Bengaluru and Hyderabad.
     
    Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    tillan2k

    1 month ago

    hope JIO Reliance become HUOwei of India and make India technology giant ..

    June Auto Sales Show Sequential Uptrend
    India's major automobile players reported a sequential uptrend in June, as the rate of sales de-growth decelerated.
     
    Accordingly, two-wheelers and tractors off-take on a sequential basis in June showed narrowing of the de-growth rate.
     
    However, analysts said that the industry is still reeling under the impact of the Covid-19 outbreak.
     
    On a company specific basis, automobile major Maruti Suzuki reported a year-on-year decline of 54% in total sales in June 2020. The company's total off-take declined to 57,428 units from 1,24,708 units sold in June 2019.
     
    The total sales included 52,300 units off-take in the domestic market and of 839 units to other OEMs. Exports during the period under review fell to 4,289 units from 9,847 units shipped out in June 2019.
     
    Another automobile major, Hyundai Motor India, reported cumulative sales of 26,820 units in June 2020, of which, domestic sales accounted for 21,320 units and exports another 5,500 units.
     
    Mahindra & Mahindra reported a decline of 55% in its total vehicle sales in June 2020. The company's total sales declined to 19,358 units from 42,547 units sold during the like period of the previous year.
     
    Commenting on the sales performance, Veejay Nakra, Chief Executive Officer, Automotive Division, M&M, said: "The automotive industry has started t o see recovery both in the passenger and small commercial vehicle segments. T his has been led primarily by rising rural demand and movement of essential goods across the country."
     
    Similarly, Tata Motors reported a downfall in total sales for Q1FY21 to 25,047 vehicles, compared to 1,37,545 units sold during Q1FY20. 
     
    The company's total domestic sales for Q1FY21 plunged by 82% to 23,845 units from the 1,31,879 units sold during the corresponding period of the previous fiscal.
     
    "As of June 30, 2020, the Company has cash and cash equivalents of more than Rs 5,000 crore and undrawn committed facilities of Rs 1,500 crore," the company said in a statement.
     
    In the two-wheeler space, Hero MotoCorp reported four times wholesale growth on a sequential basis in June.
     
    The company's wholesale deliveries made to dealerships during the mo nth under review sequentially grew to over 450,744 units from the 112,682 units dispatched in May 2020.
     
    Furthermore, two-wheeler major Honda Motorcycle & Scooter India reported a sequential increase of 156% in retail sales for June.
     
    Honda's retails jumped 156% to nearly 3 lakh units in June 2020 from 1.15 lakh units in May. 
     
    The company said the second month of return of economic activity saw Honda's total two-wheeler dispatches shoot up nearly 4 times to 210,879 units in June compared to 54,820 units in May.
     
    "While normalcy is yet to return to the industry, there have been signs of hope with sales volumes increasing by almost 2 to 3 times as compared to May. But this is still below the June 2019 volume by 49% for PVs," said Sridhar V, Partner, Grant Thornton India LLP.
     
    "Predominantly, these have come from the non-metros since the large metros have been under lockdown with not many dealership networks functioning. The plant capacity utilisation has also been less with its woes of material and labour supplies," he added.
     
    According to Shamsher Dewan, VP and Sector Head, ICRA: "The initial set of data released by the automobile companies show an encouraging trend in sales in June 2020 over the prior month. Limited data released by the two-wheeler OEMs and tractor OEMs indicate healthy ramp up in sales supported by healthy demand from rural and semi-urban markets.
     
    "On the other hand, heavy commercial vehicles will continue to report weak sales trends in the near-term and will only see a gradual recovery."
     
    Suman Chowdhury, Chief Analytical Officer at Acuite Rating s & Research, said: "Acuite believes that the current sales of two and four-wheelers are also partly driven by the lack of availability of public transportation system and the perceived contagion risks in most of the large cities." 
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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