Chanakya IAS Academy Blog


Six states, UT sign pact with Centre on e-Marketplace

Government e-Marketplace(GeM) was formally adopted by six states/Union territories. The platform will ensure that public procurement of goods and services in India is carried out through an online platform and will ensure that the procurement process is transparent, efficient and free of corruption.

The adoption by states will boost the spirit of cooperative federalism and enhance cooperation between the centre and various states.

The states and the union territories that signed an MoU with the Centre include Andhra Pradesh, Assam, Gujarat, Telangana, Puducherry and Arunachal Pradesh.

Background of GeM

  • GeM owes its genesis to two Groups of Secretaries who recommended setting up of a dedicated e-market for different goods & services procured and sold by Government and PSUs
  • The e-market place has ensured that the procurement process is cashless, paperless and system driven with minimal human interface

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

  • Transparency
    • It eliminates human interface in the procurement process
    • No entry barriers for bonafide suppliers exist as it is an open platform
  • Efficiency
    • There is online end to end integration of the entire process
    • Bidding ensures competition, fair play, speed & efficiency and leads to proper price discovery
    • Rates can also be compared with market price on leading e-Commerce portals
  • Secure and safe:
    • Documents are e-Signed at various stages by buyers and sellers
    • SEBI empaneled credit rating agencies are used for conducting third-party assessment of suppliers. This to strengthen due diligence about the veracity of suppliers
    • The antecedents of the suppliers are verified online, automatically through MCA21, Aadhar and PAN databases
  • Potential to support Make in India:
    • Goods that are Preferential Market Access (PMA) compliant or are manufactured by Small Scale Industries(SSI) can be filtered on GeM
    • This will enable the government to procure Make in India and SSI goods very easily
  • Savings to the Government:
    • GeM has made the procurement process, transparent, efficient and easy to use and thus has resulted in a substantial reduction in prices on GeM
    • Demand Aggregation for items that are to be procured is expected to reduce prices by way of standardization of specifications and economy of scale
Read 1142 times Last modified on Wednesday, 12 July 2017 15:10

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