Blue Chip firms to promote the non-profit online network to curb the spread of e-commerce giants
Delhi -To keep the spread of e-commerce giants like Amazon and Flipkart in check, the blue chip firms will be looking to promote an indigenously developed and non for profit online network. This includes firms like the State Bank of India (SBI), Punjab National Bank (PNB), and BSE and NSE.
The plan was disclosed by officials who attended a meeting headed by the Union minister of commerce and industry Piyush Goyal. The official spoke in length about the efforts on the condition of anonymity as any official announcement has yet not been made.
Most of the senior executives of the companies have expressed their willingness to put inequity in the private entity that will execute the Open Network for Digital Commerce (ONDC). This was highlighted during a meeting on Monday which was conducted in presence of Piyush Goyal.
ONDC will be conceptualized in a way that will see long-term growth patterns. For this very reason, a nine-member advisory council including Nandan Nilekani, chairman of Infosys, and National Health Authority CEO R S Sharma has been formed. The main focus of ONDC is to make e-commerce platforms agnostic.
A financial institution who are also interested in participating in ONDC are Bank of Baroda, National Bank for Agriculture and Rural Development (NABARD), Small Industries Development Bank of India (SIDBI), National Payments Corporation of India (NPCI), National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL), asserted the official.
If one needs privately run companies to gain not-for-profit status then it will become necessary for them to keep their proposed corporate entity to less than 51 percent.
The official also, later on, stressed that the committee is aggressively moving towards this scheme and the plan will be in full function by the end of this year. But one thing is certain, said the financial expert, that no existing market players will be able to pick up any stake so that neutrality is guaranteed for all. The ONDC will be focusing on standardizing operations so that the princess can see the inclusion of suppliers, have an efficient logistical transformation, and value their consumers equally. Even the Confederation of All India Traders also analyzed the importance of INDC stating that with its establishment, healthy growth will be promoted in the e-commerce market which is not there right now due to the field giants.