Current events of National & International importance
Why it Matters?
The Government e-Marketplace (GeM), though aimed at cost-efficiency, inadvertently constrained scientific research by enforcing lowest-bid procurement, prompting recent reforms to restore autonomy to research institutions.
What You Should Know?
What is GeM?: Government e-Marketplace (GeM) is a unified digital platform for public procurement by Central and State Government Ministries, Departments, and Public Sector Undertakings (PSUs).
Launch of GeM: GeM was launched in August 2016 by the Ministry of Commerce and Industry to modernize and digitize the government procurement process.
Legal Mandate: The Ministry of Finance made procurement via GeM mandatory by adding Rule 149 in the General Financial Rules (GFR), 2017.
Core Objective: GeM aims to ensure efficiency, transparency, and speed in public procurement for all government entities.
Procurement Modes on GeM: Offers multiple modes like direct purchase, electronic bidding (e-bidding), reverse electronic auction (reverse e-auction), and direct reverse auction.
Benefits for Buyers: Buyers get access to a wide variety of goods, transparent pricing, real-time dashboards, and easier monitoring of procurement and payments.
Benefits for Sellers: Sellers can access the National Public Procurement Market, participate in bids/auctions, and receive direct feedback on the rejection of goods.
Onboarding Challenges: Informal sector workers, especially women entrepreneurs, often lack the required documents like Permanent Account Number (PAN) and Goods and Services Tax Identification Number (GSTIN), making registration difficult.
Udyam Portal Integration: The Ministry of Micro, Small, and Medium Enterprises (MSME) launched the Udyam Portal to integrate GeM, Trade Receivables Discounting System (TReDS), and Udyog Aadhaar, simplifying registration for small enterprises.