By Shri Joseph Selvakumar, SSO(A)/Trichy
· eRA - Electronic Reverse Auction - Software developed by CRIS - Centre for Railway Information Systems, New Delhi
· Major reforms initiative for all high value procurements
· Similar to a unique bid auction
· major reforms initiative has decided to implement Electronic Reverse Auction for all high value procurements.
· Similar to a unique bid auction as the basic principle remains the same.
· in eRA, roles of buyers and sellers are reversed.
· In oridnary auction i.e., Forward auction, buyers compete to obtain goods or services by offering increasingly higher prices ( like we experienced in Scrap auction at Railway Scrap Depots)
· In eRA - Electronic Reverse Auction, the sellers compete to obtain the business from the buyer and prices will be typically decreases as the sellers underbid each other to obtain the contract.
· eRA - extended to all Zonal Railways, Production Units and Railway PSUs
· eRA applicable to
ü Supplies - Rs. 10 Crores each and above
ü Works & Services - Rs. 50 Crores each and above
Advantages of eRA
ü Saving in cost due to increased competition. Expected to save Rs. 10000 crores on over all procurement of Goods worth Rs. 50.000 crores and of track materials worth of Rs. 10,000 crores and projects worth of 1,00,000 crores.
ü Ease of doing business.
ü Eliminates human intervention
ü Paperless transactions
ü Easy to operate the software by all without charging any fees.
ü Entire process becomes online and digital
ü Buyer is the primary beneficiary.
ü Lot of saving in procurement/purchasing costs
ü Saving in time, thus resulting timely and speedy procurements. completes in 3 to 8 hours instead of 6 weeks duration in traditional auction.
ü More transaparency
ü Negotiations through multiple rounds of bidding are eliminated.
ü Suppliers are able to see the bids of others and thus buyers benefit from the vendors "fighting the price out"
ü It removes geographical limitations, since same is online process.
ü Provides a level playing field among the vendors.