GeM can save huge amount to the exchequer
The Dollar Business Bureau
The online portal, GeM, has been launched to facilitate transparent and end to end online purchases of government goods and services.
Government e-Marketplace (GeM) has been initiated by Ministry of Commerce to change the process in which government goods and services are bought and obtained. This procurement of goods and services is essential for various departments such as government sectors, organisations, public sector undertakings and autonomous bodies.
GeM is a unitary marketplace that includes both goods and services made available to government buyers.
The statement said that the online procurement process includes e-bidding and reverse e-auction. The other benefits comprise paperless work for vendor registration, order placement and payment processing respectively.
The statement also said that the prices of goods and services are considerably reduced when compared either to the rate contract or direct purchase rates. The portal also offers training programs. GeM provides e-Signature facilities since it is secure and based completely on an online platform.
The statement detailed that the prices of goods and services displayed on GeM are 15-20% lower than the market rate and sometimes up to 50% in few cases. Bidding facility is available for procurements of goods and services with a higher value.
According to the statement, the initiative of GeM can approximately save Rs.4000 crore annually to the exchequer. GeM compares the prices of goods and services with other public procurement portals to ensure that a specific item has not been obtained at a reduced price by any other government organisation or vendors.