The Department of Public Enterprises (DPE) has written to all Central Ministries and Departments to get their Central Public Sector Enterprises (CPSE) registered in Government e-Marketplace (GeM).

DPE is one of six departments of Finance Ministry.

“All the administrative Ministries/Departments are therefore requested to suitably instruct 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,” DPE said in an office memorandum.

Loss in business

This communication is the result of Finance Secretary TV Somnathan’s letter when he highlighted that during the quarterly review meeting held in the Finance Ministry on March 22, it was informed that many of the CPSEs are still not registered on GeM as sellers. “Absence of CPSEs on GeM as sellers reduces competition and deprives the Government buyers the opportunities to get the competitive prices. Simultaneously, CPSEs may also be losing business opportunities arising from the Government buyers,” he said.

Accordingly, he urged DPE to consider issuing instructions to all CPSEs which have any product which may be purchased by Government departments to get themselves registered on GeM. “It is possible that due to small value bids, CPSEs themselves may not like to participate in the bidding process on GeM, hence CPSEs may also be directed to register their authorised resellers as well on GeM,” he said.

Procurements

As per General Financial Rules (GFRs), 2017, it is mandatory for Ministries/Departments/Central Public Sector Enterprises (CPSEs) to make procurement of common use goods and services only from GeM, if available. Many of the CPSEs are also sellers/service providers of goods and services to Government organisations.

GeM owes its genesis to the recommendations of two Groups of Secretaries made to the Prime Minister in January 2016. They recommended setting up of a dedicated e-market for different goods & services procured or sold by Government/PSUs besides reforming DGS&D (Directorate General of Supplies and Goods).

Subsequently, the finance minister in his Budget speech for FY2016-17, announced setting up of a technology driven platform to facilitate procurement of goods and services by various Ministries and agencies of the Government.

The portal was launched on August 9, 2016, by the Commerce & Industry Minister. Procurement on GeM has been authorised by GFR by making necessary changes in government rules.

Information available on the website of GeM says it has over 53,000 buyer organisation and around 22 lakh sellers and services providers. Over 16,000 categories of products and 175 categories of services are available. As on date, it implemented over 70 lakh orders with transaction value of over 1.21 lakh crore. Over half of order value was provided by Medium and Small Enterprises.

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