Analysis of RFID Procurement done by Government Agencies in India


Updated: 08 Apr 2024

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Introduction:

RFID, also known as Radio Frequency Identification, is a system used in security services. It is used in identity card, smart cards and also in credit and debit cards. In metro stations, offices, and many other sectors these electromagnetic cards are used. The government implemented RFID in a large number in the recent for the advantages it offers. It is a hassle-free and secured system. It is also used for tracking shipping containers, trucks and railroad cars. This system is highly in demand in almost every sector of the government, such as retail sector, healthcare sector, education sector, defence sector, industry etc. The government allocated a large amount for the implementation of RFID system considering its advantages. This article analyses the RFID procurement undertaken by government agencies in India during the year 2023-24.

Annual Analysis of RFID Implementation Tenders:

During the previous year, the government agencies in India published a total number of 492 tenders for the implementation of RFID system. Of which, the maximum number of tenders were published in the state of Uttar Pradesh at 52 tenders. Maharashtra ranked second in the list with 48 tenders, followed by West Bengal with 45 tenders. Among these 492 tenders, 94 tenders were published by the Indian Army, which was the top ranked agency in advertising maximum numbers of tenders last year. The Department of Higher Education and Atomic Minerals Directorate for Exploration and Research ranked second in the list with 27 tenders each, followed by the Western Coalfields Limited with 14 tenders.

RFID Implementation in Defence Sector:

The RFID solution is often used by the Indian Army to increase the efficiency in all technical activities carried out in Ammunition Depots and reduce inventory carrying costs. It is also used to make ammunition storage and use by soldiers, and to provide enhanced satisfaction to the field army. Last year, a total number of 105 tenders were advertised in the defence sectors. Of these, 94 tenders were published by the Indian Army. They sought for access control system, reader antennas etc. For example, Indian Army in Chandigarh advertised a tender for access control unit biometric RFID, locking panels and alarm piece with hybrid power supply. Apart from these, the Department of Defence published 9 tenders and the Rajasthan Civil Defence and Home Guards published 2 tenders in this regard.

RFID Implementation in Education Sector:

RFID system is a necessary requirement in the education sector as well. This technology can be used to enhance classroom management and safety and security at the premises by automating the attendance process, tracking the location and status of books and other resources, and providing feedback and information to students and teachers. In the previous year, a total number of 85 tenders were published by the government agencies in the education sector. The Department of Higher Education, School Education Directorate, and 16 other universities sought for these RFID solutions. For example, the Department of Higher Education in West Bengal advertised 2 tenders seeking for the latest version of RFID-based automation solution for library management system. Delhi University published a tender for the supply of customized solutions for installation of RFID system.

RFID Implementation for Research Purposes:

Nowadays, for conducting successful research many organizations are using RFID system to keep the data secured and to keep a track of things. In 2023, the Atomic Minerals Directorate for Exploration and Research advertised 27 tenders in different states seeking for RFID solutions. For example, they published a tender in Haryana for RFID readers with secure access management module. Apart from that, the Indian Council of Agricultural Research in Haryana and the Council of Scientific and Industrial Research in Telengana also sought for RFID technologies.

RFID Implementation in Health Sector:

RFID applications in healthcare can save important resources that can further contribute to better patient care. Last year, a total number of 10 tenders were advertised by the government agencies in the health sectors. Of these, All India Institute of Medical Sciences published 8 tenders in the states of West Bengal, Maharashtra, Rajasthan, Punjab, Andhra Pradesh etc seeking for complete RFID system. As of 2024, there are 24 AIIMS in India. The rest of the AIIMS are likely to have similar RFID requirements. Also, S.M.S. Medical College in Jaipur released a tender for the purchase of radio frequency machine. The Ministry of Medical Education and Drugs in Maharashtra advertised a tender for RFID technologies.

Contract Value for RFID Implementation:

The estimated contract value is published for a very few of the tenders. It varied from Rs. 48 thousand up to Rs. 9 crores. For example, Kolkata Police in West Bengal published a tender for set motorized swing gate with RFID solution, with the estimated budget of Rs. 48 thousand. Whereas, Rajasthan Civil Defence and Home Guards advertised a tender of worth around Rs. 9 crores. In a few exceptional cases the contract value reaches up to Rs. 27 crores; such as, DLB in Rajasthan published 2 tenders with the estimated budget of Rs. 26.26 crores. Apart from these there are many tenders with the estimated budget of a few lakhs. Hence, the contract value of tenders depends on the expenditure of the projects.

Live Tender Analysis:

As of March 18, 2024, there were a total number of 23 live tenders. Among these, West Bengal and Uttar Pradesh ranked top with the 5 live tenders each. Followed by Karnataka, Jammu and Kashmir, and Jharkhand with 3 live tenders each, as per shown in the graph below. Until March 23, 2024, the State government agencies and Public Sector Undertakings published 208 RFID tenders and Radio Frequency Identification Device tenders.

Conclusion:

The above analysis provides a significant overview of the current state and trends of the RFID technology. Apart from the above-mentioned sectors, this is widely used in transportation by the Metro Railway and the Railway. Especially, during the COVID 19 pandemic, smart cards have become the means for a no-contact transportation. This technology opens up new opportunities to make organizations more secure, reliable and accurate. The contract values of the tenders are quite profitable to the firms who are willing to take up the projects. Hence, the firms with required resources and abilities must monitor the government websites to grab these growing opportunities and make the most of it.

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