Lok Sabha Question No. 1708 (UNSTARRED), answered on 2021-12-08
Subject: GeM
Ministry: COMMERCE AND INDUSTRY
Asked by: Ganesan Selvam, C.N. Annadurai, Dhanush M Kumar, Gautham Sigamani Pon, Gajanan Chandrakant Kirtikar

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1708 TO BE ANSWERED ON 08 th  DECEMBER, 2021

## GeM

## 1708. SHRI SELVAM G.:

SHRI C.N. ANNADURAI:

SHRI DHANUSH M. KUMAR:

SHRI GAUTHAM SIGAMANI PON:

SHRI GAJANAN KIRTIKAR:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) the details of the salient features of the Government e-Marketplace (GeM);
- (b) whether the Government e-Marketplace organized National Public Procurement Conclave recently;
- (c) if so, the details thereof and the theme of the conclave along with the discussions held and outcome of the conclave;
- (d) whether  the  GeM  provides  tools  for  direct  purchase,  bidding  and  reverse  auction  for  ensuring transparent and efficient procurement;
- (e) if so, the details of direct purchase, bidding and reverse auction as on date along with the outcome, State-wise especially in Tamil Nadu and Maharashtra; and
- (f) the other steps taken by the Government to make it mandatory for all its departments to procure goods and services through e-market in the country?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

- (a): GeM is a platform which facilitates online procurement for various government buyers. With multiple procurement modes, inbuilt policies for automated market adjustments and end to end digital processes to enable vibrant buyer-seller engagement; GeM has evolved as an increasingly transparent, efficient  and  inclusive  platform,  with  MSMEs  making  up  over  56%  of  the  cumulative  Gross Merchandise Value on GeM. Few of the key features of GeM are mentioned at Annexure-A .

(b): Yes, Sir.

(c) : The 5 th edition of the Annual two day National Public Procurement Conclave [NPPC] 2021 was inaugurated by Hon'ble Minister of State for Commerce and Industry on 9 th August, 2021 through the virtual CII-HIVES platform. The key features of the two day Conclave are mentioned at Annexure-B .

(d): Yes, Sir.

( e ): Details including the State of Tamil Nadu and Maharashtra are mentioned at Annexure-C .

( f ): Government of India has amended the Rule 149 of General Financial Rules (GFR) to stipulate that goods and services that are available on GeM should be mandatorily procured through GeM. Details are mentioned at Annexure-D

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## Some of the Salient features of GeM

| a)   | Rich listing of products for individual category of goods/services                                                         |
|------|----------------------------------------------------------------------------------------------------------------------------|
| b)   | Direct purchase for amounts upto INR 25000 in line with GFR provisions                                                     |
| c)   | L1 purchase for amounts greater than INR 25000 and less than INR 5 Lakhs in line with GFR provisions                       |
| d)   | Facility for bidding and reverse auction for procurement                                                                   |
| e)   | Forward auction facility for selling of scrap etc.                                                                         |
| f)   | Proprietary Article Certificate Bid- Procurement of specific product as per requirement                                    |
| g)   | Price Trends and Price Comparison from Multiple Suppliers                                                                  |
| h)   | Direct notifications to sellers                                                                                            |
| i)   | Integrated Payment System                                                                                                  |
| j)   | Interface to search, compare, select and buy                                                                               |
| k)   | Dashboard for sellers and buyers for monitoring entire procurement lifecycle                                               |
| l)   | Online incident and grievance redressal mechanism for quick resolution                                                     |
| m)   | Integration with various agencies like GSTN, UIDAI, PAN, MCA, Udyam portal , Banks for authentications of personal details |
| n)   | No charges or fee for getting registered as seller or buyer                                                                |
| o)   | Special provisions and sections for startups, MSMEs and Emporium products                                                  |
| p)   | Fully online, secured, paperless and contactless platform                                                                  |
| q)   | Easy access for sellers to participate in bids/reverse auction                                                             |
| r)   | System for rating of buyers and sellers in place.                                                                          |
| s)   | Dynamic Pricing based on market conditions                                                                                 |
| t)   | Direct access to Government departments and their organizations.                                                           |

## Annexure-A

## Annexure-B

## Key features of the National Public Procurement Conclave 2021

- a) Virtual panel discussion sessions were held on the role of GeM in public procurement during the COVID-19 pandemic, potential and challenges for Defence, Railways and CPSEs in public procurement,  and  the  scope  for  under-served  seller  groups  such  as  women  and  tribal entrepreneurs,  MSEs,  Startups,  Artisans,  Weavers,  Divyanjan,  and  Hunarhaat  craftsmen. 10,197 participants attended the conclave virtually.
- b) 986 virtual B2B and B2G meetings were held between GeM buyers and sellers,
- c) A virtual GeM stall was established to resolve queries on the spot and facilitate registration of sellers and buyers,
- d) 72 digital exhibitions of various products and services by sellers were held  for 30 days
- e) The Conclave culminated with a prize distribution ceremony in which top 2 performing buyers and sellers were recognized and felicitated for leading their procurement efforts on GeM in 2020-21 based on their order volume and value.

## Annexure-C

## Statewise details of direct purchase, bidding and reverse auction on GeM as on date

| Overall         | Overall           |
|-----------------|-------------------|
| Purchase Mode   | Order Value in    |
| Direct Purchase | 3,77,41,99,85,707 |
| Bidding         | 8,35,05,58,53,654 |
| Reverse Auction | 1,94,80,06,97,568 |

|   S.No | State                     | Order Value in INR(BID)   | Order Value in INR(RA)   | Order Value in INR(DIRECT)   |
|--------|---------------------------|---------------------------|--------------------------|------------------------------|
|      1 | ANDAMANANDNICOBAR ISLANDS | 1,65,93,76,801            | 16,79,32,923             | 53,88,53,204                 |
|      2 | ANDHRA PRADESH            | 9,38,89,49,830            | 80,27,69,837             | 2,35,50,00,749               |
|      3 | ARUNACHAL PRADESH         | 91,91,86,415              | 18,11,74,308             | 63,51,37,485                 |
|      4 | ASSAM                     | 4,52,97,48,108            | 36,57,44,333             | 1,07,54,00,980               |
|      5 | BIHAR                     | 11,59,10,56,949           | 9,88,49,37,241           | 3,95,03,75,962               |
|      6 | CHANDIGARH                | 11,47,07,95,538           | 61,55,14,674             | 1,62,10,16,552               |
|      7 | CHHATTISGARH              | 7,26,81,41,601            | 41,99,40,262             | 10,54,31,87,951              |
|      8 | DADRA AND NAGAR HAVELI    | 4,03,38,779               | 3,98,306                 | 24,48,20,096                 |
|      9 | DAMANANDDIU               | 20,16,71,571              | 48,48,140                | 46,58,10,137                 |
|     10 | DELHI                     | 23,07,83,66,972           | 1,98,54,95,393           | 15,11,13,96,208              |
|     11 | GOA                       | 14,73,42,202              | 2,07,31,413              | 24,80,60,788                 |
|     12 | GUJARAT                   | 29,87,00,53,638           | 16,64,12,99,023          | 14,07,46,47,862              |
|     13 | HARYANA                   | 5,27,49,42,500            | 82,78,64,286             | 4,12,06,45,512               |
|     14 | HIMACHAL PRADESH          | 1,52,82,34,087            | 54,70,05,698             | 2,15,38,72,208               |
|     15 | JAMMU AND KASHMIR         | 5,80,50,00,958            | 2,81,10,15,917           | 8,97,40,14,279               |

|   16 | JHARKHAND     | 4,94,57,19,992   | 1,00,29,14,081   | 4,46,41,77,605   |
|------|---------------|------------------|------------------|------------------|
|   17 | KARNATAKA     | 6,80,11,75,148   | 73,70,80,521     | 3,87,91,36,721   |
|   18 | KERALA        | 3,46,14,67,606   | 10,51,63,558     | 2,69,51,24,896   |
|   19 | LADAKH        | 70,54,23,142     | 64,84,217        | 31,79,27,932     |
|   20 | LAKSHADWEEP   | 13,57,17,069     | -                | 16,72,85,688     |
|   21 | MADHYAPRADESH | 22,12,93,36,820  | 4,12,71,49,687   | 19,62,55,36,416  |
|   22 | MAHARASHTRA   | 24,81,09,58,196  | 3,15,06,69,487   | 8,03,96,64,350   |
|   23 | MANIPUR       | 1,42,12,85,163   | 18,63,740        | 37,64,42,152     |
|   24 | MEGHALAYA     | 25,35,24,722     | 50,48,872        | 5,92,82,562      |
|   25 | MIZORAM       | 7,64,69,448      | 3,71,047         | 7,41,41,707      |
|   26 | NAGALAND      | 14,81,50,796     | 57,47,742        | 18,33,81,871     |
|   27 | ORISSA        | 11,36,25,86,052  | 3,48,50,17,726   | 3,83,78,97,051   |
|   28 | PUDUCHERRY    | 82,65,44,179     | 3,96,17,404      | 17,28,90,211     |
|   29 | PUNJAB        | 7,49,30,92,935   | 4,92,44,61,083   | 3,04,49,59,018   |
|   30 | RAJASTHAN     | 5,83,46,62,138   | 29,71,44,968     | 3,09,40,42,450   |
|   31 | SIKKIM        | 5,01,20,231      | 1,29,992         | 22,03,87,817     |
|   32 | TAMIL NADU    | 3,58,05,50,827   | 20,13,84,187     | 4,12,39,82,462   |
|   33 | TELANGANA     | 2,16,13,21,070   | 9,73,60,149      | 4,70,09,65,457   |
|   34 | TRIPURA       | 1,08,61,86,860   | 11,33,95,509     | 53,03,89,247     |
|   35 | UTTAR PRADESH | 95,48,07,05,322  | 7,36,32,28,079   | 50,45,54,96,637  |
|   36 | UTTARAKHAND   | 2,84,82,46,586   | 13,87,13,610     | 2,83,82,15,116   |
|   37 | WEST BENGAL   | 4,34,61,84,674   | 81,00,27,979     | 1,10,53,64,567   |

## Annexure-D

1. As per GFR, GeM portal shall be utilized by Government buyers for direct on-line purchase as under: -

(i)  Up  to  Rs.25,000/-  through any of the available suppliers on GeM, meeting the requisite quality, specification and delivery period.

(ii) Above Rs.25,000/- and up to Rs.5,00,000/- through the GeM Seller having lowest price amongst the available sellers (excluding automobiles where current limit of Rs. 30 lakh will continue),  of  at  least  three  different  manufacturers,  on  GeM,  meeting  the  requisite  quality, specification  and  delivery  period.  The  tools  for  online  bidding  and  online  reverse  auction available on GeM can be used by the Buyers even for procurement less than Rs 5,00,000.

(iii) Above Rs. 5,00,000, through the supplier having lowest price meeting the requisite quality, specification  and  delivery  period  after  mandatorily  obtaining  bids,  using  online  bidding  or reverse auction tool provided on GeM (excluding automobiles where current limit of Rs. 30 lakh will continue).

2. In  addition,  Cabinet  Secretariat,  Department  of  Public  Enterprises  and  Administrative Ministries of the Government of India have issued a series of instructions from time to time advising Government  departments,  CPSEs  and  other  Central  Government  organisations  to  make  efforts  to maximize procurement of goods and services from GeM.

3. All the State Governments and Union Territories (UTs) are also utilising GeM portal for making procurements.  All  states  and  UTs,  except  Sikkim,  have  executed  MoUs  with  GeM  for  seamless procurement of Goods and Services required by them to fully realize the immense advantages accruing in terms of ease of procurement through an open and transparent procurement platform.

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