GeM considering a pilot scheme to sell products directly to consumers: CEO

Goods, services worth over Rs 4 trillion procured in FY24

The Government e-Marketplace (GeM) is considering a pilot scheme to allow small businesses and artisans to sell their products directly to consumers, Prashant Kumar, the chief executive officer, said on Friday.

GeM, a business-to-government platform, is an end-to-end e-marketplace that facilitates transparent and efficient e-procurement of goods and services needed by the Centre, states, and public sector undertakings.

Singh revealed that preliminary discussions have begun, and the scheme could be implemented following approval from higher authorities. “We are preparing for that. If feasible, if practical, we will do a small pilot in this area in the coming years, if the approvals are in place,” he said.

He stressed that the intention is not to compete with e-commerce giants like Amazon or Flipkart. Instead, the focus is on supporting and boosting businesses for small businesses and artisans. “The idea is to get into areas that the big online players have not covered in a big way,” he said.

Procurement

During 2023-24, goods and services worth over Rs 4 trillion were procured from the GeM portal, marking a 100 per cent increase compared to the previous financial year.

Singh highlighted that the procurement of services through the GeM portal has been a driving force behind this impressive GMV (gross merchandise value). “Nearly 50 per cent of this GMV has been attributed to the procurement of services, displaying a remarkable surge of 205 per cent in terms of services procured on GeM last financial year,” he told reporters.

“By creating access to the market, GeM has been exceptionally successful in breaking down the cartel of established and renowned service providers, paving the way for small domestic entrepreneurs to participate in government tenders from anywhere at any time. The vast repository of services on GeM has enabled states to procure innovative solutions that cater to all their dynamic needs,” he said.

States such as Gujarat, Uttar Pradesh, and Delhi have shown increased engagement, contributing to a rise in procurement. Central entities, including ministries and CPSEs, have also spurred the GMV, contributing nearly 85 per cent of the Rs 4 trillion worth GMV in the current financial year. The highest procuring entities among the central agencies were the ministries of coal, power, and petroleum and natural gas and their subsidiaries.

The government is also considering a proposal to allow works contracts on the public procurement portal, an initiative that Singh believes will reduce time, standardise processes, and enable seamless execution of contracts. Works contract includes service as well as transfer of goods, such as construction of buildings, roads, and setting up of plants.