Start-ups to be invited to tap into Rs 153-billion govt e-marketplace

Start-ups have been at the centre of things during the Narendra Modi government, but there’s more to come. The Government e-Marketplace (GeM), the online portal through which all public sector agencies are mandated to directly purchase common-use goods and services, is planning to start featuring start-ups soon.

A start-up corner on the website would allow start-ups to tap into the Rs 153-billion marketplace ( the total size of orders placed on GeM currently through more than 1 million separate orders). 

The GeM portal now features more than 660,000 products, from office stationery to vehicles and, 1,862 services — including transportation, logistics, waste management, web casting and analytical, among others, according to GeM chief executive officer Radha Chauhan. Many of these services have start-ups keen to be a part of this ecosystem. But the Department of Industrial Policy and Promotion (DIPP)'s list of 13,000 start-ups will be the basis of their entry, Chauhan added.

GeM authorities said interested start-ups would be asked to provide their products and services free of charge for a fixed period of about two-three months. Response from buyers on the platform will determine their long-term approval on the platform. According to DIPP officials, the move would favour smaller start-ups rather than the ones which have been in the news for their marquee fund-raising.

“Our database only includes firms which have approached us for benefit purposes,’’ an official said.

MSME push

The government is also aiming to push more micro, small and medium enterprises onto the platform. Currently, Rs 1 trillion worth of procurement is done nationally by 170 Central Public Sector Enterprises (CPSE)s through GeM. Of this, the share for MSMEs is 20 per cent, which could go up to 25 per cent soon, officials pointed out.

Seen as a step to woo small firms, the government would offer credit facility to MSMEs on GeM through the Trade Receivables Electronic Discounting System (TReDS). It is a bill discounting service supported by Small Industries Development Bank of India for pre and post shipment of products. As small enterprises find it difficult to deal with payment delays, GeM is ensuring that this issue will be resolved for MSMEs who can now avail the TReDs facility. In addition, certain products are reserved for MSMEs on GeM, which provide customized training modules in 13 languages to hand hold them for registration on the platform.

The GeM platform is also being used to place orders for World Bank projects for up to $50,000.