Cabinet allows co-operatives to procure through GeM platform

Cabinet allows co-operatives to procure through GeM platform

Context: The Union Cabinet has given its approval for expanding the mandate of the government’s online public procurement platform, Government e-Market (GeM), by allowing procurement by co-operatives

Concept :

The GeM would be the national public procurement portal and will be registered as Section 8 Company for providing procurement of goods and services required by central and state government organizations. It will provide an end-to-end online marketplace for central and state government ministries and departments for procurement of common use goods & services in a transparent and efficient manner.

• It provides the tools of e-bidding, reverse e-auction and demand aggregation to facilitate the government users achieve the best value for their money.
• All the administrative Ministries/ Departments have instructed their CPSEs having any product or service which may be purchased by any Government department, to register themselves and their authorised resellers on GeM portal as sellers for such products/services,
• many of the CPSEs are still not registered on GeM as sellers.
• Procurement As per General Financial Rules (GFRs), 2017, it is manor sold by Government/PSUs besides reforming DGS&D (Directorate General of Supplies and Goods).
• the finance minister in his Budget speech of FY2016-17, announced setting up of a technology driven platform to facilitate procurement of goods and services by various ministries and government agencies.
• Absence of CPSEs on GeM as sellers reduces competition and deprives the Government buyers the opportunities to get competitive prices. Simultaneously, CPSEs may also be losing business opportunities arising from Government buyers.