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Background of public procurement on GeM
Hemlata Khandenwal / 2020-03-16 12:13:30

Public procurement is a very important part of government activity and improvement in public procurement is one of the top priorities of the current government. Government e-marketplace (GeM) is a very bold move of the government, which aims to transform the purchase of goods and services by government ministries/departments, public sector undertakings, autonomous bodies, etc.


Background of public procurement on GeM


GeM owes its genesis to the recommendations of two groups of secretaries made to the honorable PM in January 2016. He recommended setting up of a dedicated e-market for various goods and services purchased/sold by the government / PSU besides improving DGS and D. Subsequently, in its budget speech for FY 2016-17, Hon FM announced the establishment of a technology-driven platform to facilitate the purchase of goods and services by various ministries and agencies of the government.


With the technical support of NeGD (MeitY), DGS & D has developed a GeM portal for the procurement of both products and services. The portal was launched on 9 August 2016 by the Honorable Minister of Commerce and Industry. Purchases on the GFR are authorized by the GFR by adding Rule 141A (DoE OM dated 3 May 2016). Currently, more than 7400 products and transportation services for hire in about 150 product categories are available on the GOM POC portal. Transactions above Rs 140 crore have already been processed through GeM.


The GeM is a completely paperless, cashless and system-driven e-marketplace that enables the purchase of common-use goods and services with minimal human interface.


Rule 149 of the GFR 2017 states that procurement of goods and services by ministries and departments will be mandatory for goods or services available on the GeM (Government e-Marketplace). and also get Register under GeM with GeM Registration 


How many categories of GeM procurement divided?


GeM procurement (GFR rule 149 (i) to (iii) refers) is divided into 3 categories


  • Up to Rs 50,000 - where the meeting of any supplier Specifications, quality, and delivery period can be selected by the buyer.
  • Rs 50,000 to Rs 30 lakh, where LEI can be selected from at least 3 different OEM proposals. To get better prices, online bidding or online reverse auction can also be chosen by the competent authority.
  • Above Rs 30 lakh, where it is mandatory to use online bidding or reverse auction, all are registered on the GeM portal from existing and other vendors.

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