News Brief

Govt To Set Up Private Sector-Led Non-Profit Firm To Fast-Track Implementation Of Open Network For Digital Commerce

Swarajya StaffOct 27, 2021, 10:40 AM | Updated 10:40 AM IST
Open Network for Digital Commerce (ONDC) (Representative image)

Open Network for Digital Commerce (ONDC) (Representative image)


The government has proposed to set up a private sector-led, non-profit company to fast-track the implementation of the Open Network for Digital Commerce (ONDC), reports Economic Times.

The ONDC, an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT), aims to standardise the process of onboarding retailers on e-marketplaces, and supply and delivery via online channels, and create protocols for digital ecommerce such as cataloguing, vendor discovery and price discovery.

Following a review meeting chaired by Commerce Minister Piyush Goyal, the government said that the entity is expected to provide a startup mindset enabled by a management with a futuristic vision, deep understanding of commerce, comfort with cutting edge technology and a missionary outlook to drive change.

"A non-profit company structure removes any incentive for owners to drive for profit maximization, keep focus on ethical and responsible behaviour while providing for trust, rigorous norms of governance, accountability and transparency," the Commerce and Industry Ministry said in a statement on Tuesday (26 October).


According to the Commerce Ministry statement, the role of the non-profit entity would be to develop the network by adopting and building enabling technology and encouraging wide-scale voluntary participation by ecosystem players.

It would ensure network discipline by establishing a code of conduct and rules of the network based on principles of consumer protection, fair trade and regulatory conformity. The entity will also provide foundational services for managing the network like digital infrastructure for the network, common registry, certification of participants and certifying agencies, grievance redressal, etc.

The entity will develop and operate reference applications for buyers, sellers and gateway for market activation and priming the network along with partner entities. It will also support SMEs in their digital transformation by developing readymade tools to help existing software applications quickly adapt to the network, the ministry said.

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