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Govt targets Rs 50,000-crore of public procurement through GeM in FY20

Three years since its inception/inaugration, the government e-marketplace (“GeM”) now stands at Rs 24,183 crore at the end of 2018-19. This is a result of the collective procurement by the Central and State governments.

All public sector agencies are compulsorily required to directly purchase common-use goods and services through GeM. Commerce Department’s official estimates display a target of Rs 50,000 crore in 2019-20, ultimately reaching Rs 1 trillion by 2021 by procurement. Nevertheless, this would still be lower than the total array of government procurement in the country which is presently at Rs 5.5 trillion.

In the previous financial year, more than 1.7 million distinct orders were placed on GeM, up from 300,000 orders in the year preceding that.

The current growth predictions are indicating an estimate of Rs 50,000 crore worth of orders in 2019-20, of Rs 5.5-6 trillion net procurement made yearly by the government

Many of the services and products on the portal have now been made available to more than 15,000 Department of Industrial Policy and Promotion (DIPP) recognised start-ups including the ones interested in being a part of this ecosystem. T

he government is further trying to push more micro, small and medium enterprises (MSME) onto the platform. Presently, more than 28,000 MSMEs more than Rs 1 trillion worth of procurement is done nationally by 170 Central Public Sector Enterprises (CPSEs) through GeM.

The government has also started offering credit facility to MSMEs on GeM through the Trade Receivables Electronic Discounting System (TReDS) which is a bill discounting service supported by Small Industries Development Bank of India for pre- and post-shipment of products.

The GeM platform is also being used to place orders for World Bank projects in furtherance of which, MoUs have been signed with 12 banks to facilitate payments.

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