Based on recommendations of Group of Secretaries made to Hon’ble Prime Minister, the Government has created a one stop Government eMarketplace (GeM) to facilitate online procurement of common use Goods & Services required by various Government Departments / Organizations / PSUs.
GeM aims to enhance transparency, efficiency and speed in public procurement.
The GeM would be the national public procurement portal and will be registered as Section 8 Company for providing procurement of goods and services required by central and state government organizations. It will provide an end-to-end online marketplace for central and state government ministries and departments for procurement of common use goods & services in a transparent and efficient manner.
It provides the tools of e-bidding, reverse e-auction and demand aggregation to facilitate the government users achieve the best value for their money.
Benefits of GeM to the Government, Sellers and the Indian industry and economy
- 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.
- 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 would make GeM an extremely powerful tool in the hands of Government organizations to plan and procure.
- 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.
- 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.