Govt depts to shop online for transparency in procurement

At present, 26 goods, including computers, stationery and services, are on the platform and govt plans to bring in several more by April 2017

An online marketplace was launched on Tuesday for buying of goods and services by central ministries and departments with a view to bringing transparency in government procurement, estimated at Rs 10,000 crore a year.

"It will bring in greater transparency in government procurement. Like GST will revolutionise the taxation system, this marketplace will revolutionise the government procurement," Commerce and Industry Minister Nirmala Sitharaman told reporters here.

At present, 26 goods, including computers, stationery and services, are on the platform and government plans to bring in as many as it can by April 2017, the minister said.

The government procures about 160 goods and services from various vendors. As per estimates, the Directorate General of Supplies and Disposals (DGS&D) buys goods worth Rs 10,000 crore per year for various departments and ministries.

Now, any ministry or department can buy directly goods of up to Rs 50,000 from the portal. For any amount beyond this, purchases have to be made through price comparison, bidding or reverse auction.

The Finance Ministry has directed all paying authorities to make payments on procurement within a maximum of 10 days.

The portal would help in fetching best prices besides benefiting buyer and seller, Sitharaman said.

Cabinet Secretary P K Sinha said that the Government e-Marketplace (GeM) is "gem of an idea". "This is just the beginning. We still have a long way to go. It will lead to efficiency and transparency in the procurement."

A significant feature is integrating payment portals like SBI and PFMS with GeM which makes the entire process online, Roy said, adding that in order to enable government buyers on GeM, general financial rules have been amended.

The Directorate General of Supplies and Disposals (DGS&D) has developed the portal with the help of Department of Electronics and IT.

Commerce Secretary Rita Teaotia said that the move completely re-invents the way government does its procurement.

Acceptance or rejection of goods has to be done within 10 days of receipt or will be deemed accepted.

Explaining the portal's functioning, DGS&D Binay Roy said that if one wants a particular specification of a computer, various brands and specifications are listed on the portal along with cost.

It is a completely end-to-end procurement system for purchase of common use of goods and services by buyers.

The other features of the platform includes reduction in administrative and transactions cost by government departments.

It allows online registration of suppliers and government buyers using self certification and authentication through Aadhaar or PAN.

To begin with, 26 categories like computers, office equipment and stationery have been placed on the online platform. It will also provide facility for engaging taxi services with multiple options of hiring spot and also leasing.

A call centre or help desk for GeM has been set up as it will help both buyers and sellers in conducting their transactions.