Government e Marketplace was launched on 9th August 2016. GeM is the online platform for public procurement in India. GeM modified the ways of procuring resources in the Indian business environment. List of products & services, integrated payment system, multiple modes of procurement & much transparent process. Let us discuss more about the GeM: Change the market landscape.
- What is GeM?
- Benefits of Government e marketplace
- Who can buy or sell on the GeM Portal?
- Requirement to register on GeM Portal
- Procurement Guidelines in GeM Scheme
- Success of GeM
What is GeM?
GeM is the abbreviation which is used for Government e Marketplace model for procurement and selling of goods & services. GeM is the national public procurement portal that facilitates the online procurement of goods & services required by PSE/PSU/State or central government. GeM is a contactless, paperless and cashless online marketplace that replaced the Directorate General of Supplies and Disposals (DGS&D) in 2016. GeM has brought in the visibility and transparency in public procurement. It provides all modes of procurement, viz., direct purchase, e-bidding, bidding with reverse e-auction and direct reverse auction. The platform is owned by GeM which is a 100% Government-owned, non-profit company under the Ministry of Commerce and Industries, Government of India. Ministry of Finance has made mandatory for government users to purchase through GeM.
In the year 2016, a high-powered group of secretaries’ committee recommended setting up of an institution that will facilitate electronic mode of procurement of goods & services by the Central government/state government/PSU etc. Hence in the subsequent Annual budget of 2016-17 Government of India announced setting up an institution which is technology driven and that creates an online platform, that could effectively replace the traditional system of procurement. Since the erstwhile procedure had some lacunas in its system. Therefore, it became essential to come up with such an institution in present time.
Ministry of Electronics & Information Technology, the specialised technological arm of the government developed the GeM portal for procurement of goods & services within a period less than 5 months. With more than 20 lakh registered products & more than 9 lakh service providers, the Government e Marketplace become the largest online platform to do so.
Benefits of Government e Marketplace
- Ease of doing business
We all have witnessed the tremendous improvement in World Bank ease of doing business ranking for India i.e. 63rd. GeM has played a significant role in improving the Indian business environment.
- Transparent functioning
Reducing the multiplicity of middleman in procurement of goods & services by the Government/PSU’s which increases the chances of corruption. GeM has made this complete process much more transparent by eliminating the middlemen and now, the buyer & seller can meet directly.
- Convenience to buyers
GeM is like an online shopping mall for buyers, where they can choose the product and compare the prices different suppliers are offering. This will make it easy for buyers to finalise a most rational deal.
- Integrated payment system
Payments are entered directly in the accounting software and posted in the general ledger and invoice gets download. This system of payment reduces the chances of human error in placing the entry in company’s books of accounts.
- Easy to access user interface
The dashboard of GeM is so designed that both supplier and buyer can easily access, understand and use to facilitate the actions on the website.
- Online grievance redressal mechanism
Every online system has its limitations but how to address the grievances of the customers is what makes it unique. Hence, the grievance redressal mechanism of GeM is made so prompt that it addresses the query very instantly and maintain a track of the same.
- Comparison of price trends from different suppliers
Comparing the prices of different products from different suppliers makes the choices of buyer more rational and they feel more satisfied. This boosts the confidence of buyers and increases the chance of re-purchase and spreading a positive message.
Who can buy or sell on the GeM Portal?
Both supplier of goods viz. a seller and the one, who is looking to procure goods or services viz. a buyer, needs to get registered on GeM portal to avail the benefit.
Who can be the buyer?
All Central government and State Government Ministries/Departments including its attached/subordinate offices, Central and State autonomous bodies, Central and State Public Sector Units and local bodies etc. are authorized to make procurement through GeM portal.
Who can be the seller?
The Seller on GeM will be the (Original Equipment Manufacturers) and/or their authorized channel partner(s)/ resellers (having any general authorization / dealership of the OEM to sell their product in open market) and e- Marketplaces.
Seller can get register on GeM at https://mkp.gem.gov.in/registration/signup#!/seller.
Requirement to register on GeM Portal
- Aadhaar Number of the user
- Mobile Number which is linked with Aadhaar
- Email id ending with gov.in/nic.in/gembuyer.in
- Verifying authority details such as name, mobile number and Email Id.
Procurement Guidelines in GeM Scheme
The GEM is built on the fundamental principles of transparency, value for money and openness of competition. However, since this is a technologically driven enterprise therefore it becomes essential that it should be updated time to time. So that, most updated platform could be provided to users.
Some of the indicative directives that currently exists and re-aligned for the GeM context include:
- Prices shall be quoted by Sellers on all-inclusive basis.
- All Products supplied under the Contract shall have Guarantee/Warranty for One-year period (or any period if mentioned by seller) from the date of receipt.
- On-line payments shall be made in INR against the on-line bills to be submitted by the Seller within 10 days.
- Minimum 3 weeks’ time to be allowed for submission of bids.
- Procurement by Limited Tender Enquiry in cases of urgent need.
- Technical bids to be evaluated by Competent Authority or Technical Committee.
- Bid security should range between 2-5 percent of the estimated value of procurement.
- Performance Security should be for an amount of 5-10 percent of the value of the contract.
- Procurement of services by Limited Tender Enquiry when the value of the services is less than 10 Lakhs.
- The offer and resultant Contract and all Supporting Documents are required to be e-signed on-line by the respective User.
Therefore, GeM shall institute a set of procurement guidelines for operations, that will apply to all buyers and sellers on the platform, independent of the respective procurement policies applicable to them outside the platform.
Procurement on GeM for all buyers shall be exclusively subject to the GeM guidelines, terms & conditions as published by GeM on the GeM website, which shall override all concurrent processes differing from or in conflict to the process outlined by GeM. GeM shall provide requisite mechanisms needed to comply with the intent of the various related central procurement policies and guidelines defined by the different domain ministries.
In absence of any specific GeM guidelines and terms & conditions, the buyers shall adhere with General Financial Rules of the respective entity. Thereby, GeM shall seek to design its procurement process and guidelines in adherence to the national level directives of the Government. All policies relating to various aspects of GeM transactions shall be available online and user feedback shall also inbuilt on the platform.
Success of GeM
As of November 2020, GeM has 6.48 lakh registered sellers and service providers out of which more than 1.56 lakh are micro and small sellers with a majority share of 57 % in the total order value placed through GeM. As of November 2020, it has more than 16 lakh products in about 10,101 product categories, and it has 170 service categories.
In April 2020, the platform added 146 categories of medical products and 8 services categories on its platform to help the government fight COVID-19 pandemic
You can get more about GeM at https://gem.gov.in/