GeM and DIPP to Attract Startups

The Government e-Market (GeM) and Department of Industrial Policy and Promotion (DIPP) are in the process of developing a PoC (Proof of Concept) corner for start-ups and will soon be able to onboard start-ups on the GeM platform. This will be a launch pad for start-ups in the country to access government market and give them a chance to sell on the GeM platform. Government users will be able to try out the innovative products and services offered by start-ups on a trial basis and give feedback.

As start-up products and services are innovative, and cannot be compared with similar products and services, a buyer may use them for three months and thereafter they certify that the product is useful and the price is reasonable.Based on this user certification the product or service will be listed on GeM.

GeM is also working in a mission mode to onboard maximum number of Micro Small and Medium Enterprises (MSMEs). This is GeM’s initiative for the MSME support and outreach programme which is running for 100 days covering 100 districts. This programme was launched by Prime Minister, Narendra Modi, in November 2018 as a national mission to support MSMEs.

GeM is part of this mission in 77 districts of the country and at half way of the 100-day mission, 26% of vendors on GeM are from the MSME sector and 781 registrations of MSMEs have been completed on the GeM platform.

Of the 1 lakh crore CPSE procurement being done by the 170 CPSEs that are procuring their requirements through GeM 25% is from MSMEs.

In order to encourage and support MSMEs to onboard onGeM in larger numbers, credit facility is being made available to MSMEs on GeM through TReDs, a bill discounting service supported by SIDBI 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 solved for MSMEs who can now avail theTReDs facility. Further, certain products are reserved for MSMEs on GeM. GeM also offers customized training modules in 13 languages to hand hold them to register on the platform.

GeM is now focusing on the services sector which was announced as a champion sector by the Union Cabinet this year. Services like transportation, inspection, webcasting and analytic services may be availed throughGeM by government departments.

Products leasing is also available for users on the GeM platform.Thirty-three services like cloud, cab service, HR hiring, sanitation and security are available for leasing through the GeM platform.

In order to improve quality of products and services, GeM is also offering QCBS based procurement for government departments.

In the recently concluded National Mission on GeM medical devices that are required by the health sector have been on boarded on the platform.An MoU has been signed with Kalam Institute of Health Technology, Visakhapatnam,which comes under the Department of Biotechnology, Government of India. It will be a knowledge partner and help in creating the technical parameters and catalogue for medical equipment and devices.

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

The National Mission on GeM (NMG) was launched on 5^thSeptember 2018 by Union Commerce and Industry Minister, Suresh Prabhu, to accelerate the adoption and use of GeM by major Central Ministries, States and UTs and their agencies including CPSUs and PSUs.

The objectives for creating this platform was:

To promote inclusiveness, create transparency and efficiency in public procurement, achieve cashless, contactless and paperless transaction, increase overall efficiency leading to significant cost saving on government expenditure in procurement and maximize ease in availability of all types of products and services bought by Government buyers.