GeM to focus on increasing States’ participation

Government e-Marketplace (GeM) is completely prohibiting the increasing participation of State Governments in the Public Procurement Platform by connecting more and more State Government Departments and State PSUs.

Launched in 2016, GeM is the government’s e-commerce portal dedicated for procurement of goods and services by the Central and State Governments, various Central Ministries, Government Organizations/Departments and Public Sector Undertakings (PSUs).

achievements

The platform has recently crossed the milestone of over 62,000 buyer organizations, more than 10,000 product and 290 service categories besides over 5 million sellers and service providers. GeM achieved a Gross Merchandise Value (GMV) of ₹ 2.94-Lakh Crore in the last six years. In FY22, the platform alone recorded ₹1.06 lakh crore in GMV.

“Out of 1.06 lakh crore GMV, only 30 per cent or about 30,000 crore came from state governments, while it has the potential to reach 10X this quantity. Hence, we are making all efforts to achieve this,” said Prashant Kumar Singh, CEO, Government of e-Marketplace (GeM) business Line,

“For example, Uttar Pradesh saw around 11,000 crore GMVs on the platform, but their purchase size is around 80,000-90,000 crore. Similarly, Tamil Nadu is transacting around ₹1,000 crores on the platform, while it has the potential to do several thousand crores.”

goals

For FY23, GeM has set a target of over ₹2 lakh crore in GMV. “This is very much achievable as the acceptability (for the platform) among Central Public Sector Enterprises (CPSEs) is increasing rapidly. We are making concerted efforts to reach out to various State Governments, which we have been doing in the last two years. I could not due to the Covid-19 pandemic,” Singh said.

GeM has given priority to 11 states including Uttar Pradesh, Madhya Pradesh, Rajasthan, Tamil Nadu, Telangana, Maharashtra, Assam and Gujarat etc. to increase their share of procurement through GeM portal.

“Out of 11 states, we will focus on five states and have appointed an advisor for the remaining six states. The consultants would be posted in these states, would look at their procurement patterns, sit with government departments and show them the benefits of transacting on the GeM portal by providing a comparative analysis for each of their purchases,” explained Singh.

e-procurement system

He explained that though some states in South India already have an e-procurement policy for more than a decade, they are finding it difficult to migrate to GeM due to issues with their legacy e-procurement system.

GeM partnered with Confederation of Indian Industry (CII) and other associations to spread awareness about the platform among vendors and service providers, especially MSMEs. “For example, MSMEs in Tamil Nadu got orders worth ₹3,200 crore from outside the state, but only ₹230 crore within the state,” Singh said.

Amendment

The Central Government has amended the General Financial Rules 2017 (GFR) and made provision under Rule 149 to make the purchase of goods and services through GeM mandatory. However, procurement through GeM is not mandatory for state governments and is done through voluntary MoUs.

“We enter into voluntary MoUs. Some states have progressed, some are progressing while some are in their infancy,” Singh said.

Published on

26 August 2022

,
https://www.thehindubusinessline.com/news/gem-to-focus-on-increasing-state-participation/article65814300.ece

Leave a Comment