Brain Booster for UPSC & State PCS Examination (Topic: GeM Platform)

Why in Broadcast?

PM Narendra Modi applauded the vendors for displaying their products on GeM platform, as the platform crosses Rs 1 lakh crore Gross Merchandise value.

Government-e-Marketplace Platform is a one-stop national public procurement portal that enables online procurement of the goods and services required by various Central and State Government Departments, Organizations, and Public Sector Entities (PSUs).
It was launched in 2016 and its nodal ministry is Ministry of commerce and Industry.
The platform offers reverse e-auction and e-bidding tools to help government users get the best value for their money.
The procurement of goods and services by Ministries and the Central Public Sector Enterprises (CPSEs) is mandatory for goods and services available on GeM.
It reduces the manual process inefficiencies in procurement and provides a paperless and cashless e-marketplace with a streamlined, consistent process for all users.

GeM eliminates human interface in vendor registration, order placement and payment processing.
Online, cashless and time bound payment is facilitated through integration with PFMS and State Bank Multi Option System.

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.
The reasonableness of the rates can also be confirmed through online comparison with market price on leading e-Commerce portals.

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.
SEBI empaneled credit rating agencies are being used for conducting third-party assessment of suppliers.

On GeM, the filters for selecting goods which are Preferential Market Access (PMA) compliant and those manufactured by Small Scale Industries(SSI), enables the Government buyers to procure Make in India and SSI goods.

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.
The average prices on GeM are lower by atleast 15-20%.
Demand aggregation for most of the common use goods and services is estimated to result in annual savings to the tune of Rs 40,000 Crore per annum.

India's public procurement market is estimated to be between 20 and 22% of the GDP, or about $500 billion annually.
CPSEs are a major contributor to public procurement of projects, goods and services.
The platform enables quick and effective procurement to the government organisations during crucial times or during time of emergency, like in Covid-19 pandemic.
It implements the ideals of Make in India and other policies that work in the direction of MSME development and boost their inclusivity