Government e-Marketplace (GeM): Transforming Procurement Dynamics

  • January 1, 2024
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Government e-Marketplace (GeM): Transforming Procurement Dynamics

Subject :Polity

Section: National body

  1. Evolution of GeM:
    • GeM, initially focused on general store items has expanded its scope. Now, it brings together defense PSUs Bharat Dynamics Ltd (BDL) and Bharat Electrical Ltd (BEL) for procurement.
  2. Specific Procurement Details:
    • BDL, specializing in Akash missiles, procured radars and ground support systems from BEL.
    • The procurement for Akash missiles is valued at ₹4,415 crore.
  3. Involvement of Defense PSUs:
    • Defense PSUs are not only buying through GeM but also selling items.
    • Goods traded include simulators, drones, bulletproof jackets, and ballistic helmets.
  4. Significant Benefits of GeM:
    • Beyond transaction savings, GeM reports substantial benefits due to end-to-end digital journeys.
    • Savings in advertising costs, printing costs, travel costs, and maintenance of in-house portals.
  5. Initiatives for Customer Satisfaction:
    • Use of custom bids encouraged for goods not available on GeM.
    • Pre and post-dispatch inspection of goods by Quality Assurance and NABL-accredited labs.
    • Timely online payment ensures 99% satisfaction rate.
    • GeM ensures that 25% of orders go to MSMEs.

Government e-Marketplace (GeM): Revolutionizing Procurement in India

GeM is an online platform launched by the Indian government to facilitate e-commerce for procurement of goods and services.

It serves as a one-stop solution for various government departments and organizations for their procurement needs.

Initially focused on procuring general store items, GeM has expanded its scope to include a wide range of products and services.

It has become a central hub for government purchases, bringing together buyers and sellers.

  1. Key Objectives:
    • Enhance transparency, efficiency, and speed in government procurement
    • Provide a fair and open platform for vendors, including small and medium-sized enterprises (MSMEs).
  2. Demand Aggregation Module:
    • GeM encourages demand aggregation, wherein ministries pool requirements for similar products.
    • This promotes large-volume procurement benefits and efficiency in the procurement process.
Government e-Marketplace (GeM): Transforming Procurement Dynamics Polity