Introduction
In January 2016, Prime Minister made the Government e-Marketplace owes its formation to the recommendations of two Groups of Secretaries. They suggest setting up a dedicated e-market for different products & services that are procured or sold by the Government or PSUs besides reforming DGS&D. Afterwards, the Ministry of Finance in his Budget speech announced setting up of a technology-driven platform to provide the procurement of products and services through several Ministries and agencies of the Government for the Financial year 2016-17.
DGS&D and National e-Governance Division with technical has developed a GEM portal for the acquisition of both Goods & Services. The Commerce & Industry Minister launched the Portal on 9th August 2016. General Financial Rules has been authorized of Procurement on GEM by making necessary changes in government rules. At Present, more than 7400 products in about 150 product categories, and hiring of transport service are also possible or provided on the GEM POC portal. The portal of GEM is a completely paperless, cashless, and system-driven e-marketplace that facilitates the procurement of common-use of products and services with a minimal interface of humans.
The Objective of the GEM portal
The main objectives of the GEM portal are mentioned hereunder: -
The main objective of the GEM Portal is to boost efficiency, transparency, and speed in the procurement of the public.
GEM Portal provides multiple modes of procurement such as direct purchase, bidding with reverse e-auction, e-bidding, etc.
To make ministries or government departments too mandatorily on the portal to procure the products and services.
To enable price discovery efficiently, economies of scale, and promulgation of best practices.
Benefits of the GEM portal to the buyer and seller
The GEM portal provides some benefits to the buyers of goods and services which are as follows: -
On the GEM Portal available a higher range of product varieties which enhances the choice of the customer.
Transparency of price and listing of several products for individual categories of products, and services.
Search, Compare, Select, and facility to buy any product easily.
When requires to buy Goods, and Services online.
A continuous vendor rating system
People used a friendly dashboard for buying, monitoring supplies, and payments.
Easy Return policy
GEM Portal provides some benefits to the seller of goods and services which are given following: -
1. Direct access to all departments and organizations of the government.
2. One-stop shop for marketing with minimum effort.
3. One-stop shop for reverse auctions on goods or services
4. New Product recommendation facility convenient to Sellers
5. Price can be changed that is based on the condition of the market.
6. The seller used a friendly dashboard for selling and monitoring supplies and payments
7. Consistent and uniformity in the procedures of purchasing any product.
The registration process on the GEM portal for ‘Buyers’-
In the case of ‘buyers’, the registration process is divided into two users: first, ‘Primary Users’ and second, ‘Secondary Users’. The functioning of ‘Primary’ and ‘Secondary’ users is explained given under-
On the GEM Portal primary users register their organizations.
They will make user accounts for the Secondary users.
Primary users will assign roles and duties to the Secondary users and Primary users will also inspect all the transactions of the Secondary users.
Notably, some categories that are allowed to get registration as ‘buyers’ under the GEM portal are given the following: -
Central Government
Ministry and departments of the State Government in which including subordinate offices.
Central and State autonomous bodies
Central and State PSUs and local bodies.
The ‘Primary Users’ can be registered on the GEM portal by some easy steps which are as follows: -
Visit the portal of GEM i.e. https://gem.gov.in/;
Go to the website ‘Sign Up’ and select the option of ‘Buyers’ from the go-down list.
Click on the option of ‘Review Terms & Conditions’.
Undergo the list of terms and conditions that are given on the portal and tick the checkbox.
Enter your ‘Aadhaar Number or Virtual ID’ and ‘Mobile Number that is linked to your Aadhaar card
Tick on the option of the verification box and click on ‘VERIFY AADHAAR’,
OTP will be sent to the registered number then enter the OTP and click on the option of ‘Verify’.
A registration form will be displayed on the screen. Fill in all the required details accurately.
Enter your e-mail ID and verified it.
Now, enter your User ID and Password. After that re-confirm the password and click on the option of ‘Create Account’. Once the account is created then the Primary user requires to add a secondary user by clicking on the option of ‘Add user’.
The registration process on the GEM portal for the ‘Sellers’
Under the GEM portal, some legal entities are allowed to get registration as ‘sellers’ which are given the following-
Proprietary firm
Partnership firm
Limited Liability Partnership
Private Limited Company
Public Limited Company
Registered society
Statutory bodies
The seller requires to satisfy the eligibility criteria for obtaining eligibility to be registered on the GEM portal which is given the following: -
The seller must be an Original Equipment Manufacturer.
The seller must be an entity having the authorization to sell products that are manufactured by an Original Equipment Manufacturer.
It should be noted here that some categories are considered Original Equipment Manufacturers and accordingly are eligible to sell products on the GEM portal which are given the following: -
1. Manufacturer
2. Importer and authorized sellers
3. Brand owners and third-party manufacturing
4. Service providers
5. Assemblers
The ‘Seller’ can be registered on the GEM portal by some easy steps which are as follows-
Visit the portal of GEM i.e. https://gem.gov.in/;
Go to the website ‘Sign Up’ and select the option of ‘Buyers’ from the go-down list.
Click on the option of ‘Review Terms & Conditions’.
Undergo the list of terms and conditions that are given on the portal and tick the checkbox.
Enter your ‘Aadhaar Number or Virtual ID’ and ‘Mobile Number that is linked to your Aadhaar card.
Tick on the option of the verification box and click on ‘VERIFY AADHAAR’,
OTP will be sent to the registered number then enter the OTP and click on the option of ‘Verify’.
A registration form will be displayed on the screen. Fill in all the necessary information accurately.
Enter your e-mail ID and verified it.
Now, enter your User ID and Password. After that re-confirm the password and click on the option of ‘Create Account’.
Payment of caution money by the sellers
Under the GEM Portal, indeed sellers do not need to pay any registration fees. However, they are needed to deposit a fixed amount it is called a ‘caution money’ deposit. The amount of caution money to be deposited depends on the turnover of the seller. The same is explained in the table that is mentioned below-
| Turnover of the seller’s amount of caution money that is to be deposited | Amount of caution money to be deposited |
| Less than 1 Crore | Rs.5,000 |
| Between 1 Crore to 10 Crores | Rs.10, 000 |
| More than 10 Crores | Rs.25,000 |
Conclusion
It concluded that the Commerce & Industry Minister launched the Portal on 9th August 2016. General Financial Rules has been authorized of Procurement on GEM by making necessary changes in government rules. At Present, more than 7400 products in about 150 product categories, and hiring of transport service are also possible or provided on the GEM POC portal. GEM Portal provides multiple modes of procurement such as direct purchase, bidding with reverse e-auction, e-bidding, etc.
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