Uttar Pradesh becomes first state to fully adopt GeM

In December 2024, Uttar Pradesh (UP) has became the first Indian state to fully adopt the Government e-Marketplace (GeM) platform with an aim to achieve transparency and eliminate unethical practices in public procurement.

• As per an official estimate, the state government is expected to save over Rs 2,000 crore annually through GeM-based procurement of goods and services.

Key Points:

i.The integration of the GeM platform in UP enforces strict adherence to guidelines aimed at fostering transparency and efficiency in procurement processes.

ii.The policy mandates that no conditions contrary to GeM rules are permitted, prohibiting practices like price discovery bids, offline contracts, and quantity-based bids, along with restricting the request for samples during bid evaluations.

iii.The UP government has repealed more than 33 previous procurement-related directives to ensure full adherence to the GeM portal’s policies.

About Government e-Marketplace (GeM):

i.GeMis an online platform for public procurement in India that was launched on 9th August, 2016 by the the Ministry of Commerce and Industry(MoC&I) with the objective of creating an inclusive, efficient, and transparent platform for the buyers and sellers to implement procurement activities in a fair and competitive manner.

• The purchases through GeM by Government users have been authorized and made mandatory by Ministry of Finance(MoF) by adding a new Rule No. 149 in the General Financial Rules, 2017.

ii.It provides the tools of e-bidding, reverse e-auction and demand aggregation to facilitate the government users thus achieving the best value for their money.

iii.The GeM portal has been developed by GeM SPV (Special purpose Vehicle).

• GeM SPV has been established as the National Public Procurement Portal as section 8 Company registered under the Companies Act, 2013 for providing procurement of goods and services required by Central & State Government organizations.

iv.The policy prohibits practices like price discovery bids, offline contracts, and quantity-based bids, along with restricting the request for samples during bid evaluations.

v.Tender eligibility criteria, such as turnover and past performance requirements, have been relaxed, providing greater opportunities for micro and small enterprises (MSEs).

vi.The policy has mandated minimum wages, Employee Provident Fund (EPF), and Employee State Insurance (ESI) benefits for outsourced employees.

Initiatives launched under GeM Portal:

i.Startup Runway 2.0: It is an opportunity for Startups to showcase their innovative products and services to Government buyers and engage in public procurement and sell their products to government buyers under 13 globally recognized Startup sub-sectors.

ii.GeMhas mandated a procurement goal of 25 % from Micro, Small, and Medium Enterprises (MSMEs) and a sub target procurement of 4% goods and services from MSME entrepreneurs within Scheduled Castes(SC)/Scheduled Tribes(ST)communities, by all government departments and Public Sector Enterprises (PSE).

iii. Womaniya :This initiative aims to showcase products made by women entrepreneurs and Women Self-Help Groups (WSHGs) and sell their products to various Government ministries, departments and institutions.

iv.The Saras Collection :It comprises handcrafted collection of handicrafts, handloom textiles, office décor, furnishings, accessories, event souvenirs, personal hygiene and care products from top SHGs in Indiawith an aim to promote social inclusion.

Note: As of November 2024, public procurement through GeM portal crossed Rs.3 lakh crore so far in the Fiscal Year 2024-25(FY25).