Odisha small scale units fear 300,000 job losses over switch to GeM

The rate contract system has proven to be a time tested process of procurement of quality goods at a reasonable price and within the stipulated time frame

Micro and small scale units in Odisha dread job losses for 300,000 people over the replacement of prevailing rate contract system with Government e-Marketplace (GeM) by the state government.

Presently, the rate contract system is in vogue for 83 items sourced by the state government. But a switch to GeM will eventually phase out the prevailing procurement system, crippling the operations of micro and small enterprises. As many as 721 registered units are leaning on government purchases to stay afloat. Each year, government departments source goods to the tune of around Rs 1000 crore from these units.

The state finance