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Government e-Marketplace |Explained

source:GeM

Government e-Marketplace or GeM is an online platform for federal and state government agencies in India to acquire products and services. The portal was created based on the recommendations of Group of Secretaries made to Hon’ble Prime Minister. The Directorate General of Supplies and Disposals along with the National e-Governance Division (NeGD) under Ministry of Electronics & Information Technology (MeitY) has created and piloted the Government E-Marketplace. The major goal of the GeM site is to improve openness and efficiency in governmental procurement and employment. The seller and buyer can buy and sell their products to the government by registering on this portal, It was launched in 2016 It is under Ministry of Commerce and Industry.


Why in the News

Even though the Government e-Marketplace (GeM) system has reduced public procurement expenses by 10% in just five years, it has only been able to use 5% of India's annual government buy volume of over Rs 20 lakh crore.

With seven lakh small businesses on board, Micro, Small, and Medium Enterprises (MSMEs) have delivered 56 percent of the order value processed through the GeM platform.


Important Points

GeM is a one-stop national public procurement portal designed to make it easier for departments, organizations, and public sector undertakings (PSUs) of the federal, state, and local governments to purchase common usage goods and services online.


For products and services that are offered on GeM, Ministry and Central Public Sector Enterprise (CPSE) procurement is required.


Additionally, it offers reverse e-auction and e-bidding technologies to help government users get the most value for their money.


GeM currently offers more than 30 lakh products, and the platform has completed transactions totaling more than Rs. 10 lakh crore.


Most recent updates:

  • The Green Gold Collection's Bamboo Market Window.

  • Origin Nation Required: GeM has enforced that all new product registrations on GeM require vendors to enter the Country of Origin.

  • The portal has enabled this feature, allowing purchasers to select just products that satisfy the minimum 50% local content requirement.


GeM Registration Process

To register as a seller on the Government e-Marketplace, the following steps need to be followed:

1. Create a Seller Account on GeM

2. Update Organization Profile

3. Vendor Assessment on GeM

4. GeM Seller Registration


The pre-requisites for a primary seller/service provider registration are:

1. Constitution Type such as Properitorship, Firm, Company, Trust or Society and Central Government/State Government.

2. Constitution Name.

3. Aadhaar Number or Personal PAN of the user(Authorized signatory of ITR)

4. For Aadhaar based registrations, mobile number which is linked with the Aadhaar is required.

5. Documents such as CIN, PAN, DIPP, UAM, ITR details as per the constitution of the organization may be required for seller registration.

6. Address of the organization.

7. Bank account details of the organization

8. Active email id.

Aadhaar is mandatory for seller registration. The registered email id of primary and secondary sellers can be changed/updated. The user ID cannot be changed later. It is mandatory to create secondary users. The primary user for a seller/service provider organization can be any authorized signatory of the organization.


Popular Product Categories Sold on GeM

The Government e-Marketplace offers a wide range of products and services. Some of the popular product categories sold on GeM are:

- Office Supplies

- IT Products

- Security Equipment

- Furniture

- Electricals

- Medical Equipment

- Vehicles

- Services


GeM Registration Services Offered by Consultancy

Several consultancies offer GeM registration services to help sellers register on the portal. These services include:

- Introduction to GeM Portal

- GeM Registration(for both OEM and reseller)

- 100% Profile Verification

- Brand Approval

- Catalogue Management

- Tendering Process on GeM Portal

- How to Prepare Fully compliant bid

- Market Analysis

- Buyer Account Workflow


Significance and Challenges


GeM (Government eMarketplace) plays a significant role in enhancing procurement processes within the government sector, particularly during emergencies like the COVID-19 pandemic. Key aspects include:


1. Transparency and Efficiency: GeM enables fast, streamlined, and transparent procurement, ensuring timely delivery of essential items needed to combat the virus.


2. Promoting Self-Reliance: In line with the 'Atmanirbhar Bharat' initiative, GeM supports domestic manufacturing and encourages small businesses.


3. Entry of Small Local Sellers: By providing access to public procurement opportunities, GeM helps small local vendors thrive under policies like 'Make in India' and MSME preference schemes.


4. Aggregating Demand: As an online marketplace, GeM brings together various entities seeking similar products, allowing them to leverage their collective purchasing power.


However, there are some challenges facing GeM:


1. Multiple Portals: Existing departmental portals may hinder efforts to establish GeM as the national public procurement hub, limiting potential benefits such as economies of scale and efficiency.

2. Lack of Compliance: Not all central organizations fully adhere to Rule 149 of GFR 2017, which requires procuring common-use goods through GeM.


Despite these obstacles, GeM aims to expand and evolve into a comprehensive one-stop solution for both buyers and sellers. Overcoming current limitations will help cement GeM's position as a valuable asset in the government procurement landscape.


Conclusion

The Government e-Marketplace is an online platform for federal and state government agencies in India to acquire products and services. To register as a seller on the portal, the pre-requisites for a primary seller/service provider registration are constitution type, constitution name, Aadhaar number or personal PAN, mobile number, documents such as CIN, PAN, DIPP, UAM, ITR details, address of the organization, bank account details of the organization, and active email id. Several consultancies offer GeM registration services to help sellers register on the portal.


Sources:GeM

Note for UPSC Aspirants: For UPSC aspirants interested in exploring further, here are some keywords to guide your research:Government e-Marketplace, GeM, online platform, federal, state government, procurement, transparency, efficiency, MSMEs, order value, public procurement portal, self-reliance, 'Make in India,' GFR 2017.

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