The government had launched the GeM portal in August 2016 for seamless procurement of goods and services by government departments in a transparent manner even as “reform in public procurement is one of the top priorities of the government."
Government e-Marketplace (GeM) — a digital portal for procurement of goods and services by government departments and public sector units has entered into a memorandum of understanding (MoU) with public sector lender Union Bank of India (UBI) for the latter to offer services including transfer of funds through GeM Pool Accounts. The bank would also advise of Performance Bank Guarantees (e-PBG) and Earnest Money Deposit (EMD) to the registered users on the portal, the commerce ministry said in a statement.
The government had launched the GeM portal in August 2016 for seamless procurement of goods and services by government departments in a transparent manner even as “reform in public procurement is one of the top priorities of the government,” the commerce ministry had said earlier.
The tie-up with UBI would also facilitate cashless payments on the GeM portal. “Online integration for payments and various banking services is one of the priorities for GeM. GeM has already signed MoU with 14 public sector and private banks to enable this,” the ministry said. GeM also works with TReDs, SIDBI to offer invoice financing and bill discounting to micro, small and medium enterprises registered on the portal GeM.
The GeM portal, which has 55,193 micro and small (MSE) sellers and service providers, out of total 288,605 seller count, offer nearly 13.6 lakh products and close to 18k services, according to the data available on the website. In terms of buyers, the portal has 39.3k buyer organisations. The number of orders made, according to the portal stands at 25.12 lakh and a transaction value of Rs 35, 462 crore. Importantly, 49 per cent of the order value comes from MSE sellers.
In August this year, MSME Minister Nitin Gadkari had also announced the ministry’s e-commerce portal Bharat Craft on the lines of Alibaba to benefit India’s MSME sector. The portal “should soon see turnover on the platform to the tune of Rs 10 lakh crore in the next few years and this would benefit MSMEs in a big way,” Nitin Gadkari had said at the listing of 200th MSME on National Stock Exchange (NSE) Emerge.