HPCL adopts Blockchain Tech to Streamline Purchase Order Systems
Oct 19, 2023
The PSU has partnered with Zupple Labs, an Indian Web3 start-up. In this partnership, Zupple Labs would help HPCL to issue tamper-proof digital purchase orders to its vendors via LegitDoc, which will be instantly verifiable on the NEAR blockchain.
Hindustan Petroleum Corporation Limited (HPCL), one of India’s largest state-owned oil companies, has adopted blockchain technology to streamline its purchase order systems and to prevent forgery in the process.
The PSU has partnered with Zupple Labs, an Indian Web3 start-up. In this partnership, Zupple Labs would help HPCL to issue tamper-proof digital purchase orders to its vendors via LegitDoc, which will be instantly verifiable on the NEAR blockchain.
HPCL noted in its announcement that this initiative is aimed at curbing forgery of purchase orders, making it easier for vendors to avail of trade finance via collateralization, proof of turnover, and participation in public procurement. The facility will be made available to the public and vendors within the month of October.
Interestingly, over the last 5 years alone, HPCL has awarded purchase orders worth $52 billion, nearly Rs 4 lakh crores, making these purchase orders high-value credentials of economic importance. However, until now, digital automation was a challenge as automated purchase order verification capability for third party requests outside of HPCL did not exist, causing large manual toil for processing external verification requests.
With the implementation of LegitDoc, historically fraud-susceptible purchase orders can now be issued to appropriate stakeholders – which in turn enable participants to instantly and seamlessly verify with a click of a button. This move towards a more transparent and efficient purchase order system is a significant step forward for HPCL and the oil and gas industry as a whole, promoting digital automation and enabling trust in the industry.
Neil Martis, founder of Legit Doc, explained, “It’s exciting to see an oil conglomerate such as HPCL use our technology LegitDoc, to secure billions of dollars’ worth of purchase orders. This serves as a testament to the confidence that businesses and governments have placed in our blockchain platform over the years in protecting important documents.”
This is not the first time the government has adopted blockchain technology to streamline its processes. LegitDoc was adopted by the administration of Gadchiroli, Maharashtra to issue 65,000 tribal caste certificates in 2022. The technology was also used to issue COVID-19 vaccine certificates in 2021 in the state of Maharashtra. The Maharashtra government also used the technology to issue over 1,00,000-degree certificates in 2022.
Sources>>HPCL adopts blockchain tech to streamline purchase order systems