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  • Writer's pictureRajesh Audithyan

GeM - Government e-Market Place. An Unknown treasure to traders and manufacturers !!

Are you into business ? Eager to supply your products and services to Government ??

A must read article useful to General public.

Introduction :

If someone ask us, which is the big e commerce company in India, Immediately we will say Flipkart or Amazon. But there is another e commerce Organization which is growing in fast track mode. It is our Central Governments “ GeM “ - Government e-Market Place From August 2016 to September 2018 over 8 lakhs transactions recorded in above portal with turnover worth of Rs.12,239 crores.

Back Ground :

Like a Private Organization, Government Offices also need right from pencil to computers, to run their office. Earlier all the Central Government purchases are handled by DGS&D – Directorate General of Supplies & Disposals. This Department primarily aimed to centralize the Government Purchases and distributing needy items to all Central Government Offices. DGS&D had 4 regional offices with 1200 employees. Approx. 20% of GDP spent for these kind of purchases hence as we know, there was huge mal practices, favoritism, delay in payments, no transparency etc., Hence Central Government wanted to change entire methodology during the year 2016.

What is GeM ?

To bring transparency and ease of doing business, Central Government introduced GeM in which interested suppliers can register themselves and offer their products and price in website. Like other e commerce companies, GeM also an e commerce organization registered under Companies Act,2013 under section 8 and running as a non for profit organization.

How GeM works ?

Let us take example of Computers. Earlier DGS&D used to open public Tender in which suppliers used to quote their price and lowest bid will be selected. Upon award of supply contract, supplier has to fulfill his contract obligations and then payment processed to them. Under new GeM system simply purchase officials can browse in GeM portal. Supplier wise details such as price, duration required for supply, product specifications everything available in finger tips. Orders will be placed on line and suppliers will come to know the sanction of orders in their GeM Login dashboard itself. Vigilance or other Government Audit authorities can simply verify who was given supply order, on what price, whether it is lowest etc then and there.

Not only supply, service too !!

Apart from suppliers of products, service providers can also register in GeM. For example, Cab services. Government departments needs cars and other transport vehicles for their departmental use. Earlier whatever price demanded by Cab Operators was paid by Government. But now huge number of cab operators are registered with GeM and now cars and vehicles can be hired for lowest cost.

Benefits to Start Up companies with innovative new products and services :

Over 800 start up companies already been registered in GeM for their products, services and softwares etc., New product and services value upto Rs.50,000/- can be registered immediately, but new products and services over 50K value shall be allowed to be registered depending upon its requirement. Hence above 50K value new supplies and services needs to supplied to a needy department on test basis. If it is useful to them then that start up will be allowed to be registered with GeM.

Transparency and quick payments :

GeM completely removes face to face follow up for supply and payment processing etc., Being procurement and purchase automated, GeM enables payments too automated. Without bribe and undue advantages, payments also processed under electronic method.

Upto 50K value of purchase, officials can select any supplier. But value above 50K, who ever offers lowest price only will be selected. Also Purchase officials can initiate e-bid as per old procedure and call for quick quotes.

What is beneficial to Government ?

GeM was started with approx. 100 products during Aug 2016 and handled procurements to the tune of Rs.420 crores within six months. Next one year it has crossed Rs.5000 crores worth purchases. Current Financial Year target is Rs.22,000 crores. At present over 175000 suppliers and service providers are registered with GeM under 1400 heads of products and services. Apart from Central Government, over 170 PSU ( Public Sector Undertakings ) also using GeM for their procurements and MSME supply companies are much benefited in GeM concept.

Way forward :

This market is worth approx. 4 lakhs crores. Now only 36 services are registered and 200 more services needs to be added. Also all the State Government procurements too will brought under GeM shortly.

If you are a manufacturer or service provider and not registered with GeM, why are you waiting for !! Enroll today with GeM and be a prestigious supplier to Government.

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