Government e-Marketplace(GeM)

Context:

Government e-Marketplace (GeM) has brought in certain changes to promote ‘Make in India’ and ‘Aatmanirbhar Bharat’.

Changes introduced

  • It is now mandatory for sellers to enter the Country of Origin while registering all new products on GeM.
  • Sellers, who had already uploaded their products before the introduction of this new feature on GeM, have to regularly update the Country of Origin.
  • There shall be a provision for indication of the percentage of local content in products.
  • ‘Make in India’ filter has now been enabled on the portal. Buyers can choose to buy only those products that meet the minimum 50% local content criteria.

Government e-Marketplace (GeM):

GeM is a one-stop National Public Procurement Portal to facilitate online procurement of common use Goods & Services required by various Central and State Government Departments / Organizations /Public Sector Undertakings (PSUs).

  • It was launched in 2016 to bring transparency and efficiency in the government buying process.
  • It operates under the Ministry of Commerce and Industry.
  • The procurement of goods and services by Ministries and the Central Public Sector Enterprises (CPSEs) is mandatory for goods and services available on GeM.
  • GeM aims to enhance transparency, efficiency and speed in public procurement.
  • It also provides the tools of e-bidding and reverse e-auction to facilitate the government users achieve the best value for their money.
  • At present, GeM has more than 15 lakh products, around 20,000 services, and more than 40,000 Government buyer organizations.

GeM facilities:

  • Listing of products for individual, prescribed categories of Goods/ Services of common use.
  • Look, estimate, compare and buying facility on dynamic pricing basis.
  • Market place buying of majority of common User Items.
  • Buying Goods and Services online, as and when required.
  • Transparency and ease of buying.
  • Useful for low value buying and also for bulk buying at competitive price using Reverse Auction/ e-bidding.
  • Continuous vendor rating system.

Benefits of GeM to the Government, Sellers and the Indian industry and economy

  1. Transparency:
  • GeM eliminates human interface in vendor registration, order placement and payment processing, to a great extent.
  • Being an open platform, GeM offers no entry barriers to bonafide suppliers who wish to do business with the Government.
  • At every step, SMS and e-Mail notifications are sent to both buyer, his/her head of organization, paying authorities as well as sellers.
  1. Efficiency:
  • Direct purchase on GeM can be done in a matter of minutes and the entire process in online, end to end integrated and with online tools for assessing price reasonability.
  • For procurements of higher value, the bidding/RA facility on GeM is among the most transparent and efficient, in comparison to e-procurement systems in vogue within the Government sector.
  • For creating a bid/RA, the buyer does not need to create his/her own technical specifications as they have been standardized on GeM.
  • These make GeM an extremely powerful tool in the hands of Government organizations to plan and procure.
  1. Secure and safe:
  • GeM is a completely secure platform and all the documents on GeM are e-Signed at various stages by the buyers and sellers.
  • The antecedents of the suppliers are verified online and automatically through MCA21, Aadhar and PAN databases.
  • In addition, SEBI empaneled credit rating agencies are also being used for conducting third-party assessment of suppliers.
  • This would further strengthen due diligence about the veracity of suppliers wanting to do business on GeM.For high value bids/RA on GeM, an e-Bank Guarantee is also being introduced.
  1. Savings to the Government:
  • The transparency, efficiency and ease of use of the GeM portal has resulted in a substantial reduction in prices on GeM, in comparison to the tender, Rate Contract and direct purchase rates.
  • It has resulted in standardisation of public procurement policy landscape
  • Enhanced ease of doing business with the Government
  1. Potential to create far reaching impact beyond online procurement
  • It will help catalyst for Make in India, Digital India schemes.
  • It will further help fuel innovation and indigenous production and has been a tremendous boon for the MSME sector.
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